Gifting when paying full care home fees

perfect10

My mum has just become full paying in care home. She has physical difficulty so can no longer look after herself.

She loves shopping and buying presents at Christmas and tends to spend quite alot at this time, but I am now worried that this will be questioned - deprevation of assets etc

Although annoying, we fully understand that she now has to pay as over the £23,500 mark but within 12 months she will be below this mark, we don't want to be seen to be deliberately spending her money as this is not the case, I just want her to enjoy her time and buying presents especially for the grandchildren is something that she absolutely delights in.



Has she now got to rein her spending in? Which would seem unfair as it's her money? are there amounts she is 'allowed' to spend? any advice on this would be welcome.

Catswhiska

There is no reason why she cannot buy gifts but it now has to be a sensible amount. Several hundred pound or a lot more would be frowned on. My mum whilst in care gave me £50 at Christmas and on my birthday but no more. I know it seems unfair but the LA could ask you to account for excessive spending.
I would think she could spend £20/25 on herself each week for clothing and toiletries without there being a problem as this is what is allowed when she becomes funded by the LA in a years time

Mojisola

perfect10 wrote: »

She loves shopping and buying presents at Christmas and tends to spend quite alot at this time, but I am now worried that this will be questioned - deprevation of assets etc

Although annoying, we fully understand that she now has to pay as over the £23,500 mark but within 12 months she will be below this mark, we don't want to be seen to be deliberately spending her money as this is not the case, I just want her to enjoy her time and buying presents especially for the grandchildren is something that she absolutely delights in.

Has she now got to rein her spending in?

Yes, just as she would if she needed to put money aside to pay the rent or mortgage at home.

She doesn't have to stop buying presents, just go for cheaper ones.

xylophone

If one year of full fees is going to see her with capital below £23,500 (and remember that until her capital is under £14250 she may still need to contribute), then she needs to be very moderate with her gifting to avoid giving the appearance of deliberate deprivation of assets.

badmemory

Is she claiming attendance allowance? You can usually get higher rate if you are self-funding in a care home. You can't get it if the LA are paying, but it will help stretch out her savings a little until that time.

unforeseen

xylophone wrote: »

If one year of full fees is going to see her with capital below £23,500 (and remember that until her capital is under £14250 she may still need to contribute), then she needs to be very moderate with her gifting to avoid giving the appearance of deliberate deprivation of assets.

If there is a record of that level of gifting in previous years then I don't think that it would be seen as deprivation of assets

ETA

See https://www.step.org/news/uk-regular-cash-gifts-did-not-prove-deliberate-deprivation-assets

perfect10

badmemory wrote: »

Is she claiming attendance allowance? You can usually get higher rate if you are self-funding in a care home. You can't get it if the LA are paying, but it will help stretch out her savings a little until that time.

Thanks, it is on my list of things to do and she should be entitled to full rate.

It's what I thought about gifting but thought I would ask for opinions.

perfect10

unforeseen wrote: »

If there is a record of that level of gifting in previous years then I don't think that it would be seen as deprivation of assets

ETA

See https://www.step.org/news/uk-regular-cash-gifts-did-not-prove-deliberate-deprivation-assets

Thank you that is really helpful and yes there will be some sort of record of gifting, although it has usually been cash, the same amount has been withdrawn each Christmas and it certainly isn't like the amounts in that article!!

xylophone

If there is a record of that level of gifting in previous years then I don't think that it would be seen as deprivation of assets

I think there is quite a difference in the situation of the person in the link and the OP's mother.

It seems that the OP's mother's capital is far more modest - she is fully aware that she has only enough cash to fund one year of fees before reaching the amount at which she would be eligible for assistance.

It seems to me that in these circumstances care is needed.