Nice Headache

rehire

My father who’s 84 and lives in sheltered accommodation has recently come into some money £46k due to sale of his house. Due to him now having this amount of money and being over the £6k threshold he now has to pay for the things that were provided by the council free of charge. I mentioned to him that why not put X amount of pounds into one of my accounts to bring him back under the £6k threshold but he says he’s been told he can’t do that. Has anyone any ideas as how to get him back under the £6k threshold?

jem16

You can't. It would be termed deprivation of assets and the council could claim it back.

RayWolfe

And why would he want the rest of us to pay for him when he now has means?

rehire

as i don't see why someone who has paid to the system all his life should now in his twilight years have to use what little money he's managed to accumulate paying for care. i as a tax payer have no problem in my taxes going toward the upkeep of this type of person. I'm only sorry that you don't feel the same

ZARA

rehire wrote: »

as i don't see why someone who has paid to the system all his life should now in his twilight years have to use what little money he's managed to accumulate paying for care. i as a tax payer have no problem in my taxes going toward the upkeep of this type of person. I'm only sorry that you don't feel the same

i totally agree with u, do u have kids? he could give his grandchildren a small gift & then they would be tax free savings i think!!!!

jem16

rehire wrote: »

as i don't see why someone who has paid to the system all his life should now in his twilight years have to use what little money he's managed to accumulate paying for care. i as a tax payer have no problem in my taxes going toward the upkeep of this type of person. I'm only sorry that you don't feel the same

I agree but many including the council do not.

i totally agree with u, do u have kids? he could give his grandchildren a small gift & then they would be tax free savings i think!!!!

It doesn't matter how he gets rid of the money, it would still be classed as deprivation of assets and the council could claim it back.

It's too late now to do anything about it and I'm afraid the £46k will need to go towards his care.

ZARA

well it doesnt sound right to me he been working hard all his life paying taxes, & now he cant even get free care when this goverment is more then willing to give out handouts to single mums, assylum seekers & gods knows who else!!!!

RayWolfe

Oh dear!!!!

ZARA

:eek:

RayWolfe wrote: »

Oh dear!!!!

yes!! OH DEAR!

isofa

What if you put it in tax free NS+I savings, such as the saving certificates, or is that still classed as deprivation of assets? I assume so

And surely he can give 3K away to grandchildren too, that's well within the law you can give 3K away a year without any tax issues, and as many gifts as you like under £250.

However I've no idea if that affects the deprivation of assets, but jem16 said it makes no difference.

Might be worth talking to a good accountant about it, just in case.

jem16

isofa wrote: »

What if you put it in tax free NS+I savings, such as the saving certificates, or is that still classed as deprivation of assets? I assume so

Fraid so.

And surely he can give 3K away to grandchildren too, that's well within the law you can give 3K away a year without any tax issues, and as many gifts as you like under £250.

It's not a tax issue though.

However I've no idea if that affects the deprivation of assets, but jem16 said it makes no difference.

It would have to have been given away long before the need to pay for care.

This factsheet might help.

http://www.housingcare.org/downloads/kbase/2338.pdf

Might be worth talking to a good accountant about it, just in case.

To be honest I doubt if an accountant can do anything about it and would only be a waste of money.

An IFA would be able to plan in advance for this but it's far too late now.