Care home fees and property rent

peteuk

Im going to assume that there is no FIL.  So when MIL passes her estate will be frozen and will need to go to probate.  With an original version of the will this is estimated to take to upto 16 weeks (currently taking longer) only then can you look at what to do with funds.

At the point of death you loose POA and all funds are moved into an account (Note the limit for no probate has recently increased). Once you have probate then the wishes of your MIL can be acted upon.

Gifting 100K prior to this may be looked at as deprecation (as previously mentioned). OP says MIL is self funded, is there further funds, this is obviously a tax evasion act but be careful if this comes up on the tax mans radar then they will investigate eg without the 100k gift does it mean inheritance tax is due.  So if mum passes in six years time, HMRC can investigate for a number of years backwards, so although it may seem legit now, if they do investigate it might not prove so in the future. 

Are you living in your own house now, if so second home may mean an end to your UC claim. If new house is in MIL name then again it goes to probate.  Legal age to purchase a house is 18.  So depending on your children’s age, it can not be in their name.  

IMHO - you’re trying to avoid tax (as OP states in post) but to carry this off you’ll need legal/financial  advice as it may, and probably will return to bit your behind.  Either by your UC claim or tax evasion and using your POA to pay any UC overpayment or fines etc will be seen as abuse of power.