Situation…..., thoughts please
Age 70, 3 sons all 40 odd. All left to them divided by 3. Father recently died £600k to me. My house £150k, left to my 3, so total £750k. I am in ‘good’ health and have looked at lovely houses to buy outright, but my mobility/legs is a problem. I have all I need here/nearby in this house as I grow older. Lovely to have the money from Dad (Mum) but of no ‘real’ use to me now. (Would have been years ago) (cruises/holidays/cars – don’t want/need/got it)). My kids could use it £ NOW
??? Give £500k to them now (£100k left for me as a safety blanket) If I died the next day, they would be liable for IHT at 40% less allowances, so £325 + £150 = £475. Estate is £750 so £750 - £475 = £275 x 40% = £110 div by 3 = £37k. So they sell the house and clear it all.
CGT – no issue…?
Deprivation….. I am in good health, now. ….6 mths time….. I go into a nice/not LA care home. I have £100k + house. = £250k. This lasts say 3 years with house being sold after 1 year to fund. Would they have to find the money to repay any LA funded/future fees after my money runs out? (ie is deprivation a Q after 3 years). I know I would be shifted from somewhere nice to a LA jobby, but would I really care at that stage – or be dead before!?
I have all I need for now/probable future. £100k still a nice ‘buffer’. Won’t be looking at moving/cruises, etc. Can’t see me lasting ‘forever’. Am I looking at this correctly/OK. Why not sort the kids out now… 2 of them looking at moving/extending now – could extend their expectations - nice
Any thoughts/obs welcome please. Strange times.