Advent-ures in the MSE Forum... Our Advent calendar is live, helping you discover a new corner of the community each day. Visit the homepage and scroll down

Mother inherited money while in a care home

My mother has unexpectedly inherited a substantial amount of money but she is in a care home funded by the council. Should this be declared to the council or could she gift some of it?
«1

Replies

  • Kim_kimKim_kim Forumite
    3.7K Posts
    Eighth Anniversary 1,000 Posts Name Dropper
    Forumite
    My mother has unexpectedly inherited a substantial amount of money but she is in a care home funded by the council. Should this be declared to the council or could she gift some of it?

    Seriously!!!
    Should the council tax payers in your county continue to find her while she passes the money to you?
  • KatiehoundKatiehound Forumite
    6.4K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Forumite
    If she was to gift some of it then she is knowingly reducing her assets and thereby trying to 'cheat' the council out of paying for her own care.

    Clearly the inheritance needs to be declared- but I'm sure you knew this already. Gone are the days when folk could give their money away to relatives so that the state could fund long term care- that loophole is closed.
    Being polite and pleasant doesn't cost anything!
    If you found my posting helpful please hit the "Thanks" button!
    Many thanks


  • PollycatPollycat Forumite
    33.1K Posts
    Part of the Furniture 10,000 Posts Name Dropper Savvy Shopper!
    Forumite
    My mother has unexpectedly inherited a substantial amount of money but she is in a care home funded by the council. Should this be declared to the council or could she gift some of it?

    That's great news.

    You could consider moving her to a home that may give superior care now she can afford go fund her own care instead of relying on a council funded one.
  • tacpot12tacpot12 Forumite
    6.9K Posts
    Sixth Anniversary 1,000 Posts Name Dropper
    Forumite
    While moving your mum to a better home is something you can consider, if she is happy where she is, and the staff are taking good care of her, I'd suggest that she stays where she is and pays for it herself. The council will be able to help someone who needs care but cannot afford it if your mum pays for her own care. No reason why some of the money can't be spent by your mum on improving her life though. She should spend what she reasonably can on herself, and pay for her care with the rest.

    She won't be seen as depriving herself of assets if she spends sensible amounts on justifiable expenses.
    The comments I post are my personal opinion. While I try to check everything is correct before posting, I can and do make mistakes, so always try to check official information sources before relying on my posts.
  • tocsintocsin Forumite
    186 Posts
    Part of the Furniture 100 Posts Combo Breaker Name Dropper
    Forumite
    I tend to agree with the moral situation expressed by most of the posters above.

    However, if the will as written did not take into account the changed situation over the years, than I would suggest googling 'Deed of Variation'.
  • Dear me. Much moral outrage, not a lot of factual info. If your mother is getting Pension Credit, she may well be on an Assessed Income Period. If so, she does nor have to report changes in capital. These AIPS are being phased out for new claimants, but if she is over 75 and on an indefinite AIP, this will continue unchanged. See https://www.nidirect.gov.uk/articles/changes-assessed-income-periods

    Suggest you have a word with your local CAB. Also worth reposting on the benefits section of this forum as there is more expertise there.
  • p00hsticksp00hsticks Forumite
    10.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    Dear me. Much moral outrage, not a lot of factual info. If your mother is getting Pension Credit, she may well be on an Assessed Income Period. If so, she does nor have to report changes in capital. These AIPS are being phased out for new claimants, but if she is over 75 and on an indefinite AIP, this will continue unchanged. See https://www.nidirect.gov.uk/articles/changes-assessed-income-periods

    Suggest you have a word with your local CAB. Also worth reposting on the benefits section of this forum as there is more expertise there.

    As far as I'm aware (and you link seems to reinforce) , any AIP would relate specifically to the receipt of Pension Credit, and wouldn't extend to care home funding (which will comes from the local coucil, not DWP as benefits do)
  • p00hsticksp00hsticks Forumite
    10.8K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    tocsin wrote: »
    However, if the will as written did not take into account the changed situation over the years, than I would suggest googling 'Deed of Variation'.

    a deed of variation wouldn't avoid any intentional deprivation od assets, since it would require the beneficiary to agree to forego the inheritance....
  • Keep_pedallingKeep_pedalling Forumite
    12.6K Posts
    10,000 Posts Seventh Anniversary Name Dropper Photogenic
    Forumite
    I am afraid their is no get out here, a DoV, as has already been pointed out, would be treated as depreciation of assets, as would gifting large chunks of it away.

    The council should be informed of her change of circumstances so a new assessment can be made. Remember that her inheritance will be a matter of public record, as will her estate be when the time comes.
  • teddysmumteddysmum Forumite
    9.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker
    Forumite
    Regarding Deed of Variation: refusing the inheritance would be considered the same as giving money away, as both would be construed as a way of evading self-funding.
This discussion has been closed.
Latest MSE News and Guides

Is your local HSBC closing?

114 branches to shut in 2023

MSE News

Advent Competitions

The countdown is on

MSE Forum

Baileys £10 for 1L at Tesco

When you scan your Clubcard

MSE Deals