Dad wants to give me money - Who to tell

simon2018

I'm hoping to buy a flat this year.
ATM I live with my parents.

Both parents are almost 70.

They want to give me and my three sisters a cash gift of 60k each.
We have talked about this a few times and dad is aware of
cash gifts and tax exemptions of 3k per annum and 250 gifts to many as they
wish.

Do my parents need to involve a solicitor?

I'm the youngest, 30 yrs old, sisters are older
and all have their own homes and savings.

Both my parents suffer from various ailments
associated with age, eg arthritis, acid reflux, some sight and hear diffs but dad and mum still drive and use no walking aids.

They also plan to downsize their property from a townhouse to a bungalow and with money
leftover may give all of us another few k's.

Thanks in advance.

anselld

No need to involve Solicitor or tell anyone (just keep a record). However they must ensure they retain sufficient funds to cater for possible care costs since these cannot be legitimately avoided by giving away assets. (Deprivation of assets).

John-K_3

Given that you look likely to lose your job, is this wise?

Pauli354

The only issue I can forsee and its a serious one, is If they give away their assets and need to go into care over the next few years, you could be in a situation where the care authority will want to know what assets were available and where they went. They will require this information up front and immediately.
You cannot just give away your assets and avail of free care in your elder years. Authorities are very wise to this now, and unfortunately will go into great depth if they are asked to care for elderly people who seem to have no means. There aim is to take control of the persons private wealth be it savings or property to fund the care needed.
I have to say in your situation, it is precarious because a health authority or trust will not accept gifting of wealth in this way as fair and may issue proceeding to have this money repaid if it is found that your parents need care and not enough savings or property to cover that care for the foreseeable future.
I am not trying to scare you, its just a matter of fact. My 70 year old mother recently wanted to transfer ownership of her house to myself and 2 sisters for this very reason to ensure our inheritance and ensure a health agency do not seize the house to fund care if she ever found she had to go into a retirement or care home. She had heard so many scare stories from her friends that it was really worrying her.
We went to a solicitor together and she advised extreme caution as it wasn't just a simple case of transferring deeds into our names. If my mother was still living at the property at the time she might need to go into care, then the Authority would take the stance that the transfer of property to us was solely to evade care charges. The solicitor advised they could if they suspected, then issue proceeding to gain possession of the house to fund my mothers care. They look very closely at all transfers of wealth in the years up to a care application as they are acutely aware that most older folk will try to offload wealth to siblings so the health authority cannot grab it.
We got round this somewhat by my mother taking on in effect tenant status with us acting as landlords and my mother paying a rent. The solicitor stated this may still not even be watertight, but my mother wanted to proceed anyway. For eg, the health authority could demand to see rent payments over years, and if we cannot show that, then they could smell a rat.
We also got a letter drawn up to confirm my mother could remain in the property until she alone decided otherwise.
Your situation is slightly different in that its movement of cash not property, and I remonstrate with your parents totally. Its awful to think that your hard earned savings or home could be taken to fund your elderly care especially after a lifetime of paying taxes. But you need to be very careful. if as the poster above advises, that the monies your parents are passing to you will result in them having only a small amount of wealth left and not enough to cover sheltered care, then I honestly feel you could face the circumstances I've described.
However, if your parents have passed these monies to you, and they are still of considerable means with more than enough to meet future care costs, then you have no issues. But the wealth or part of it will be taken to fund their future care.
Note though that care costs are astronomical and could eat through reserves very quickly. For acute care in a home, you could be looking up to £4k per month if the person needed 24 hr care. Its a lot less for say a residential home where the elderly person is relatively fit and healthy.

Pauli354

John-K wrote: »

Given that you look likely to lose your job, is this wise?

Where did she say that?

Les79

John-K wrote: »

Given that you look likely to lose your job, is this wise?

Indeed, a very brave decision to make in buying a flat when embroiled in a row with your manager at work!

I think the mortgage comes into play like (which is the risky part for OP here), but to be fair it *may* be possible to buy a flat outright for 60k in a bit of a craphole! That wouldn't be a massive strain on OP should they face unemployment.

Mind you, had a look in the nearest craphole to me just now and you can only get a 50% houseshare for 60k or less (whatever the hell that is!). That's up North as well! So who knows?

OP, I hear you like thinking about punching women/people. Do you like horses? You could always buy a horse instead :rotfl:

https://i.ytimg.com/vi/ApbRL9-slqI/hqdefault.jpg

Les79

Pauli354 wrote: »

Where did she say that?

In another ongoing thread where they are trying to get an established manager sacked and seems to be on a kamikaze mission.

John-K_3

Pauli354 wrote: »

Where did she say that?

On another thread. He wants to violently assault his manager, who has disrespected him, but as he’d get sacked for that is running a vendetta against her instead.

Combined with yet another where he details his family’s shenanigans to try to game the system, he’s not creating a great impression of himself.

On the other hand, it suggests he’s from the sort of place where a 60k flat would be the envy of the neighbours, so maybe his impending sacking won’t be such a problem.

Tom99

I would suggest each parent gives you £30k each.
That way each can make use of this years £3k allowance and c/f last years £3k if no gift last year.
Then £84k will be deducted from each parents NRB if the die within 7 yrs.
But if one parent has a much shorter life expectancy, say less then 7 yrs, then maybe the other parent should make the whole gift.

nomorekids

If you want to go down the solicitor route to guard against any future "deliberate depravation of assets" considerations should your parents require care or bankrupt etc then there is something called a "Deed of Gift" if you want to look it up.

Tom99

nomorekids wrote: »

If you want to go down the solicitor route to guard against any future "deliberate depravation of assets" considerations should your parents require care or bankrupt etc then there is something called a "Deed of Gift" if you want to look it up.

[FONT=Verdana, sans-serif]That would not avoid a LA claiming depravation of assets if you need care, just like a Deed of Variation to a will does not avoid the LA treating it as a voluntary gift.[/FONT]