Gifts for grandchildren 23 December 2022 at 9:49PM in Cutting tax 2 replies 138 views

Jasonjxb

My father will be going into a care home shortly and we will need to sell his house to enable us to pay care home fees.  Can he gift his grandchildren (I believe £3k per year) from the funds of his sale or do all the proceeds need to left to pay for fees?  The fees will be £80k per year.

Jeremy535897

The figure of £3,000 a year is an annual exemption from inheritance tax, and is a total figure for the donor, not per donee. The issue of care home fees is a different matter, and only arises when an individual's assets are at a level where the council has to pay the care home fees. The matter is fully explained here:
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs40_deprivation_of_assets_in_social_care_fcs.pdf

Keep_pedalling

Depends, does he still have the mental capacity to make his own financial decisions? What is his annual income, and what level of savings will he have after the house sale?