Terminal Illness - Paying Son for Care from Estate?

Twointhebush

I have a relative who is terminally ill and is over the inheritance tax threshold. His son is a qualified nurse, if he was to give him full-time care, can he be paid tax free from the estate?

Twointhebush

And just thinking - what about gardening etc. I know this wouldn't save much, but it would make a difference. Especially if the nurse turns down other work to care?

Keep_pedalling

Yes, he can. Any payments should be at the going rate and need to be declared for income tax purposes.

You do seem to have a lot of questions about various dying relatives, do you actually understand the rules around IHT and the exemptions that apply to estates?

Twointhebush

Thanks, I'll pass that on.

There's only one terminally ill person. The IHT is in hand but I was looking to see if there was anything I can help with. The caring is a pretty good start.

Keep_pedalling

Twointhebush wrote: »

And just thinking - what about gardening etc. I know this wouldn't save much, but it would make a difference. Especially if the nurse turns down other work to care?

How would turning down other work help? You can’t compensate someone for lost wages for not being able to do 2 jobs at once. Yes they could employ a gardener, a cleaner and someone to cook for them, but that should be done solely for their comfort not just as a means on maximising someone’s inheritance.

The great thing about having built up enough wealth to leave your estate owing IT is that you can afford the best care available at the end of your life. If you want to spend your last few months with 24/7 care on tap with live in careers or in a high end nursing home you can do do it.

Twointhebush

Thanks for you reply. Turning down work helps the terminally ill person, it doesn't pay the carers bills. I think you're overestimated the size of the estate relative to the number of beneficiaries, it doesn't go that far...

Keep_pedalling

Twointhebush wrote: »

Thanks, I'll pass that on.

There's only one terminally ill person. The IHT is in hand but I was looking to see if there was anything I can help with. The caring is a pretty good start.

Sorry, I thought your MIL was also terminally ill. I don’t think at such a time hunting for ways to save a small amount of IT is really that helpful, the priority is your relative’s and their nearest and dearest welfare, worrying about IHT should be the last thing on their mind.

Twointhebush

You two nearly had me, this is a cutting tax forum.

GrumpyDil

Yes the forum is about tax cutting but seriously.

If someone is terminally ill and has money in their estate which would pay for the best possible care in the last stages of their life why would you worry about IHT and keeping money in the family.

If the son is qualified and experienced enough to provide the best end of life care then fair enough. But if he is not experienced in end of life care then why would you not pay someone who is to provide that service?

mjm3346

GrumpyDil wrote: »

Yes the forum is about tax cutting but seriously.

If someone is terminally ill and has money in their estate which would pay for the best possible care in the last stages of their life why would you worry about IHT and keeping money in the family.

If the son is qualified and experienced enough to provide the best end of life care then fair enough. But if he is not experienced in end of life care then why would you not pay someone who is to provide that service?

I agree, and them paying for the best end of life care they can get along with the best of anything else they want could quickly bring down the value of the estate anyway. (obviously being tax efficient is good but the primary concern should be getting the best even if that is not be the most tax efficient thing to do)

Keep_pedalling

Twointhebush wrote: »

You two nearly had me, this is a cutting tax forum.

It may be a cutting tax forum, but when it becomes a choice between a dying persons welfare and a bunch of money grubbing relatives trying to protect their own selfish interests, then the latter are not going to get much support here.