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Deprivation of assets query

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Deprivation of assets query

edited 30 November -1 at 1:00AM in Over 50s Money Saving
28 replies 12.9K views
solanum55solanum55 Forumite
8 posts
edited 30 November -1 at 1:00AM in Over 50s Money Saving
Hello,
It looks like Mum will be going into sheltered accommodation and selling her house. She can afford the sheltered accommodation from her pension income and so is thinking of giving the money from her house sale to the grandchildren/great grandchildren to help them with housing costs.
If after a year or 2 she goes downhill and needs full nursing care, will the authorities come looking for her house sale money? If so where will this leave the grandchildren who will have spent the money on house purchases?
Thanks Steve
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Replies

  • lessonlearnedlessonlearned Forumite
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    The short answer is yes they may well do.

    There is no defined timescale for this kind of scenario. I have no idea “how far back” they would go.

    To my knowledge, unlike when someone has died and the 7 year rule applies, there is nothing in law to stipulate how long ago one would have needed to dispose of assets.

    However, my guess is one or two years wouldn’t be long enough.
  • Keep_pedallingKeep_pedalling Forumite
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    She would be very foolish to give her major assets away. The 7 year rule applies to IHT not to DoA for which there is no time limit.
  • MojisolaMojisola Forumite
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    solanum55 wrote: »
    If after a year or 2 she goes downhill and needs full nursing care, will the authorities come looking for her house sale money?

    If so where will this leave the grandchildren who will have spent the money on house purchases?

    The council can assess her as still having the money and refuse to pay for her care.

    How would the family manage her needs if this happens?
  • margaretclaremargaretclare Forumite
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    She would be extremely ill-advised to give away all her assets. She can't know what she may yet need for herself in time to come.

    I've thought of helping one of the GC, but helping is all it is. I wouldn't dream of denuding myself.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • BrowntoaBrowntoa Forumite, Board Guide
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    It's 100% deprivation of assets

    It will be very foolhardy to attempt to do it
    Links in my signature currently broken
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's , Boost your income and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to [email protected] Any views are mine and not the official line of MoneySavingExpert.
  • SilvertabbySilvertabby Forumite
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    If you think there's any chance that your mum will need nursing home care in the future (only about 30% of elderly people actually do) then she will need this money to pay for her care.

    Otherwise, let her give her money away - with your assurance that you will take her into your own home to care for her if needs be.
  • MataNuiMataNui Forumite
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    Browntoa wrote: »
    It's 100% deprivation of assets

    It will be very foolhardy to attempt to do it

    Well, its not 100% deprivation of capital. The local authority would need to prove that:
    1. She could reasonably see that she would be needing paid for care.
    2. Avoiding paying was the main motivation in giving away the money.

    Now i am 100% sure they would try it on if she was to need care at a later date and the fact she is currently going into sheltered accommodation may add weight to them arguing for point 1. But...going into sheltered accommodation could also be argued from the other side (that actually she is mitigating any future costs of care) and she can afford the current care package herself. Also if the money was indeed spent by the grandchildren to get onto the housing ladder that would be a strong argument against point 2.

    So, 100% sure the council would try it on (if she needs additional care in the next 5 to 10 years) but no where near 100% sure they would win any appeal. Seems like a bit more of an edge case to me.
  • BrowntoaBrowntoa Forumite, Board Guide
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    At her age it would be deprivation

    Disposal of a large asset at this point would not pass scrutiny of the courts , might have worked if it had been done many years ago.

    Councils regularly challenge these and win , she should be expecting to have provision for care within the next few years
    Links in my signature currently broken
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's , Boost your income and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to [email protected] Any views are mine and not the official line of MoneySavingExpert.
  • BrowntoaBrowntoa Forumite, Board Guide
    48.7K posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
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    Links in my signature currently broken
    I'm the Board Guide of the Referrers ,Telephones, Pensions , Shop Don't drop ,over 50's , Boost your income and Discount Code boards which means I volunteer to help get your forum questions answered and keep the forum runnning smoothly .However, please remember, board guides don't read every post. If you spot an inappropriate or illegal post please report it to [email protected] Any views are mine and not the official line of MoneySavingExpert.
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