Gifts for grandchildren

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.

Mojisola

Jasonjxb said:

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.

How much is the house going to sell for?

How many years of care home fees will that cover?

macman

What is his income?

Keep_pedalling

This is a duplicate thread but I think this is the better board to post than cutting tax.

One further question does he still have the mental capacity to make such decisions?

Jasonjxb

His income is approx £12k per year.  House sale will cover care home fees for 3-4 years

Jasonjxb

Keep_pedalling said:

This is a duplicate thread but I think this is the better board to post than cutting tax.

One further question does he still have the mental capacity to make such decisions?

No he has dementia 

theoretica

Jasonjxb said:

Keep_pedalling said:

This is a duplicate thread but I think this is the better board to post than cutting tax.

One further question does he still have the mental capacity to make such decisions?

No he has dementia 

Was he already in the habit of gifting his grandchildren £3k every year?

elsien

Is there a power-of-attorney in place and if so what does it say about gifts? But if he hasn’t been gifting that amount up until now then you’re going to struggle to show that it’s in his best interest to do so now.

74jax

When mam was in a similar position, we were able to carry on the gifts of £3k - they had been made for many many years and all we had to do was get bank statements to show it had happened. 

Keep_pedalling

As his attorney you have no authority to make gifts beyond his historical gifting, so if he was not in the habit of making that level of gifts you can’t start making them on his behalf now. The £3000 figure you mention is an IHT exemption and is only really relevant for people with assets that take them into IHT territory which is not the case for your father.

Gavin83

Jasonjxb said:

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.

For how many years has he been making these gift payments?

In what way are making these payments within his best interests?