CGT IHT Nursing home fees and gifting

Browntoa

An IFA is the way forward , tax planning etc

The use of trust's to avoid care home fees is no longer an option , still now classified as deprivation

AnotherJoe

patel007 wrote: »

Thanks to those that have tried to genuinely help
So far, we are in good health, but why should those that have worked hard, invested sensibly as well as spent money have to pay tax, on tax on tax when those living in taxpayers funded homes pay a big fat zero for nursing homes

Because those that have done all that can stay in a decent place of their own choosing at a location that suits, instead of a s**thole ?

le_loup

patel007 wrote: »

So far, we are in good health, but why should those that have worked hard, invested sensibly as well as spent money have to pay tax, on tax on tax when those living in taxpayers funded homes pay a big fat zero for nursing homes, grants and usually as better off as those with one home and a private pension, EG hard working person/s worked hard-spent cash on private pensions so when they retire, they are no better off on income in many cases than those in tax payers homes and lots of benefits - the same homeowners then can't even give money to their loved ones when they have passed away as nursing home fees for those with assets have no limits.

Sorry, forget my post #5 offering to pay for your care home. I had thought that you sounded like a decent fellow - how foolish was that?

Keep_pedalling

patel007 wrote: »

Thanks to those that have tried to genuinely help
So far, we are in good health, but why should those that have worked hard, invested sensibly as well as spent money have to pay tax, on tax on tax when those living in taxpayers funded homes pay a big fat zero for nursing homes, grants and usually as better off as those with one home and a private pension, EG hard working person/s worked hard-spent cash on private pensions so when they retire, they are no better off on income in many cases than those in tax payers homes and lots of benefits - the same homeowners then can't even give money to their loved ones when they have passed away as nursing home fees for those with assets have no limits. The tories promise a limit of 50k for working people in 2010 but never happened now talking re 100k

So, is there anyone that can tell me if IFA is the best way forward, please?
Thanks

You have made very large capital gains for which no work was required and so far have paid no tax on. If nothing changes your estate will end up paying IHT on some of those gains so it is not tax apon tax,

We have an estate of a similer size and one of the joys of being that fortunate, is that we are know that should care be needed we can afford a high standard of care whether that is home or residential. My elderly mother who until a year ago lived in LA authority bungalow, is now in LA funded care, and although she is happy there, it is not want I would want. It is a rather old building and she has a very small room with no onsuite facilities. The staff are great but there are often not enough of them on duty so can be overworked.

A few months before she actually got a place I paid for some respite care in a private nursing home in a modern purpose built building. Large bedrooms, some with facilities for couples which you won't get with LA funding, a high staff to resident ratio, good food with lots of choice and far more activities to choose from.

If it comes to it I want to to choose where I go and have the alternative option of being able to pay for full time care in my own home.

Yes you should consult an IFA, but forget any idea that they can save you from care costs.

euronorris

Yes, see an IFA.


No, you cannot avoid care costs (not without it biting you in the bum later), and as others have stated, you'd be daft to. There is a vast difference between the facilities and level of care received by a purely LA run home, and a private one (and it's not just the cost).

Daniel54

patel007 wrote: »

the same homeowners then can't even give money to their loved ones when they have passed away as nursing home fees for those with assets have no limits.

IFA is the best way forward

You have plenty of assets so why wait until you are both dead ? You can gift substantial sums and still be free of deliberate deprivation of assets.

The average stay in a care home is around two years.As an alternative,you might want live in care ( although that is no cheaper)

You are liable to CGT on disposal of the rental properties.Giving a property away does not alter this.

So budget for your care ,which may not be needed.Gift what you feel comfortable with - ideally equally to each child,and enjoy your wealth come retirement.

Keep_pedalling

Daniel54 wrote: »

IFA is the best way forward

You have plenty of assets so why wait until you are both dead ? You can gift substantial sums and still be free of deliberate deprivation of assets.

The average stay in a care home is around two years.As an alternative,you might want live in care ( although that is no cheaper)

So budget for your care ,which may not be needed.Gift what you feel comfortable with - ideally equally to each child,and enjoy your wealth come retirement.

Agree, and that is exactly what we have done. Remember also that when your estate is in IHT territory 40% of what you spend on care is offset by an equivalent reduction in the final IHT bill.

If you really want to maximise what your children inherit, the first thing to do is look at all that cash you have sitting in banks and PBS loosing value to inflation.

p00hsticks

patel007 wrote: »

those living in taxpayers funded homes pay a big fat zero for nursing homes

Have you actually BEEN in one of these homes ? Personally, I'm hoping that if I ever come to that my pensions and savings will get me something considerably better.

POPPYOSCAR

p00hsticks wrote: »

Have you actually BEEN in one of these homes ? Personally, I'm hoping that if I ever come to that my pensions and savings will get me something considerably better.

My aunt was in a good nursing home which my cousins paid for by selling her house.

The lady in the room next to her getting exactly the same care was funded.

Linton

Most people wont need care home services at all, or not for any significant length of time. So spending the time, effort and money trying to avoid paying for it will probably be wasted.

What is far more important is care in one's own home. It is what most people seem to want. But council care is very restricted in number and length of carer visits and having the money to pay for the care you really need can make a major difference to your quality of life. In these circumstances impoverishing yourself could actually make your situation worse by ensuring that you do need to go to a care home, when better home care would have made it unnecessary.