Gifting money from MIL in care home - POA

BeatTheSystem

Sea_Shell wrote: »

Genuine question...

If there would be no IHT to pay, and she's guaranteed not to run out of money for care....who's going to know, or care, where her money went? Who stands to currently inherit? Any other family that would come out of the woodwork and cause a fuss?

(I'm not for one minute saying this is the right thing to do)

Probably know one would ever find out, but I do take my duties seriously and wish to be squeaky clean on such matters.

My wife is an only child. My MIL has no siblings or cousins that would come out of the woodwork.

Keep_pedalling

BeatTheSystem wrote: »

35K pa is the going rate. This is what the Local Authority pays, we negotiated the same, sometimes private payers pay more than the LA rate.

re nil rate bands. I admit my knowledge is not clear on this concerning the recent changes and need to look into this, are you saying that if we retain her property then the IHT limit will be increased? Her husband died 7 years ago.

If so then probably the safest thing to do as an attorney is to keep the property.

The residence nil rate bad still applies even if the house is sold, it is also transferable from her husband even though it only came into force after he died.

Are you totally happy with the choice of care home? I don’t think I could find one to meet my needs for that sort of money, but if I need care I will be looking to maximising my comfort not how much I leave behind.

lisyloo

Care home prices vary a lot across the country and also depending on needs. Property is obviously a factor in London and the SE.

We went to some that were fully equipped with hoists for immobile people and also others that looked like a nice Manor House hotel and didn’t cope with immobile people or incontinence.

Elderly people don’t in general cope with moving very well.
I find it hard to believe she’s living somewhere sub standard, just probably somewhere without high property prices.

BeatTheSystem

lisyloo wrote: »

Care home prices vary a lot across the country and also depending on needs. Property is obviously a factor in London and the SE.

We went to some that were fully equipped with hoists for immobile people and also others that looked like a nice Manor House hotel and didn’t cope with immobile people or incontinence.

Elderly people don’t in general cope with moving very well.
I find it hard to believe she’s living somewhere sub standard, just probably somewhere without high property prices.

We are in the Midlands, property prices are much less than the south.

We did consider a more expensive home but after discussion with a social worker we chose the one she is in which has a very low staff turnover, some of the larger ones although more salubrious seem a little less personal, we have got to know the staff on first name terms and by chance she has retained her local GP that she knows. Its a small place with only 25 residents.

The budget would stretch to a more expensive one but she is happy there. We are concerned that as her dementia progresses she may need nursing care but possibly then we can start to look at continuing care.

getmore4less

re: Residential nil rate band read up on the Downsizing/sale rules.

good chance you have upto(depends on house value) £300k extra NRB now and £350k from next year

evergreen

As GetMoreforless says, even though you are selling house your MIL should still get downsizing allowance when IHT is calculated.