Inheritance Tax

ZZaffy

Brother had to pay for his own care. In exceptional cases the NHS will cover those costs. Brother was an exceptional case. We applied for this financial support. Brother died. After Brother died the NHS agreed that brother should not have paid for his own care and the money is to be refunded. Will the refund from NHS be charged with inheritance tax? Thank you.

Keep_pedalling

If his estate if over the IHT threshold yes, as the refund is a debt owed to his estate.

ZZaffy

Thank you for your precise answer. Another thing. Brother had four siblings. We are all equal beneficiaries. At the end, Brother was in a care home and needed 24 hour care, could not be on his own for even a moment. We hired daytime care to go to the home and look after him at about £14 per hour. I did the nightshift and did not charge. Can I charge the estate for that care?
Thank you once again.

Keep_pedalling

ZZaffy wrote: »

Thank you for your precise answer. Another thing. Brother had four siblings. We are all equal beneficiaries. At the end, Brother was in a care home and needed 24 hour care, could not be on his own for even a moment. We hired daytime care to go the home and look after him at about £14 per hour. I did the nightshift and did not charge. Can I charge the estate for that care?
Thank you once again.

No, although your siblings could agree to compensate you by receiving more of the estate through a deed of variation.

You should also consider the impact this inheritance may have on your IHT liability, and think about ways of minimising your liability.

ZZaffy

Thank you. You have been so helpful. The reason for asking is because we may go slightly over the IHT threshold. My Brother was given a carer's allowance but even though I was Power of Attorney and main carer, I did not take the carer's allowance. Everything is in probate now. Can I have the weekly carer's allowance retrospectively?

GauisScotius

I somehow doubt that a retrospective application for caters allowance is permissible, but that is something you could check with the DWP or your CAB. If I recall correctly, when my sister claimed it in regard to my father, it was a means tested benefit, which might preclude you anyway as I presume that, as your father was paying for day give care, you were working. Best of luck anyway, just another example of why the whole English care system is shot.

ZZaffy

Thank you for responding but presumption is incorrect. I am a pensioner.
Bother began to decline. He was given a weekly allowance. It went into his bank account. I visited him everyday, sometimes twice.
Brother declined still further. I moved in with him. I got power of attorney. Allowance still paid into Brother's account.
Brother declined still further and went into hospital and recovered slightly but hospital said it was beyond my capabilities to look after him and I was advised to put Brother in care. The care home charges were paid from Brother's bank account.
Brother declined still further and the care home said he needed one-to-one 24 hour care.
I hired daytime care from an agency at £14 per hour again paid from Brother's bank account.
I did the twwelve hour night shift 8:00pm to 8:00am at no cost.
Brother died.
Brother's estate may go slightly over threshhold.
Question is, can I retrospectively put in bills for my care which may then take the estate below the threshold?
Thank you
I will try DWP or CAB.

Keep_pedalling

Like many people you gave your time to help a loved one, you cannot subsequently make up a charge for this to avoid a small amount of IHT. Apart from HMRC you would also be reducing the amount available for the other beneficiaries.

agrinnall

I think you should speak to the Office of the Public Guardian about it rather than DWP/CAB, as they are the ones who regulate what happens with PoA.

Keep_pedalling

agrinnall wrote: »

I think you should speak to the Office of the Public Guardian about it rather than DWP/CAB, as they are the ones who regulate what happens with PoA.

The POA ceased on the OPs brothers death, it cannot be used retrospectively. While it was in effect the OP could only charge for actual expenses not time, unless the donor had stated otherwise.

ZZaffy

Again, another presumption. The estate will be shared between all of us even if some of it is via me. I was chief carer because I could. The other beneficiaries were not carers because they couldn't. Such as ill themselves and out of the country or other commitments. I am not trying to take from family but trying to legally claim against IHT.