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family asset entitlements

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Braw_LaddieBraw_Laddie Forumite
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Children's rights with mother's money:  my mother is in her late eighties.  She's in enhanced sheltered housing.  Her pensions cover all costs.  She has several thousand in savings, and will shortly receive a six-figure sum for the sale of her house.  Are there limits or restrictions on the amounts she can give to her children, and the uses they can make of her money?

Replies

  • spadooshspadoosh Forumite
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    No limits or restrictions on the amounts she can give. No limitations or restrictions on their use of it. 

    If you make money on mothers money she has gifted to you, you might be liable for capital gains tax. If she dies within 7 years of giving the money, it will be classed as a chargeable transfer and you will be liable for any inheritance tax that is owed on it. 
  • Braw_LaddieBraw_Laddie Forumite
    4 posts
    Tenth Anniversary First Post
    MoneySaving Newbie
    Thanks for this.  Do you have some experience or expertise in this area?
  • Braw_LaddieBraw_Laddie Forumite
    4 posts
    Tenth Anniversary First Post
    MoneySaving Newbie
    Follow-up question: our mother is currently able to meet the costs of her care, etc.  If she needs more care in the future, she should be able to pay for that too, without the need for support, but some of the balance may need to come out of her savings.  Are there guidelines as to what can be spent now, and what must be retained for this possibility?
  • SpendlessSpendless Forumite
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    I'd be careful. Should she need to go into a care home at a later date and she's spent/given away a large chunk of cash she might come into deprivation of assets. Google it or take someadvice from somewhere like Age UK
  • peliroccopelirocco Forumite
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    Suggest your mother keeps her money as she wont know what her future care needs are and make sure she doesn't  stint on any luxuries/ or anything to improve HER quality of life
    When she dies  you can have a free for all over what is left




    Vuja De - the feeling you'll be here later
  • xylophonexylophone Forumite
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    Children's rights with mother's money:

    They have no rights to her money.

    When the money from the sale is received, it should be paid into accounts in her name.

    She may choose to make gifts  - these can be of any amount she decides but should be carefully recorded for the benefit of her executor who may need to report any made within the seven years prior to her death.

    She should also bear in mind that she  might need residential care which is expensive - my relative's relative was paying in excess of £60,000 a year and lived to the age of 97.

    https://www.ms-solicitors.co.uk/community-care-law/deprivation-of-assets/faqs-social-care-funding-deprivation-of-assets/

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