Deprivation of assets vs just spending as you go along

Kirkmain

If I sell all my assets, turning it into liquid cash, and then spend it and gift to my friends and family to spend. And I mean SPEND, not invest into tangible assets. Like use it to live, see the World, savour Michelin star restaurants, experience VIP Taylor Swift concerts, enjoy relaxing massages and Spa holidays, play on the elite golf courses.

I will be left with no money. If I need care, the LA would deem me to have deprecated my assets and I won't be eligible for care 

But how will they make me or my estate pay? Like I say, moneys been spent, not invested

Brie

If your talking about a few hundred to a few people every year then there may not be an issue.  If you mean giving away a million or two there would.  

You would still be eligible for care but the LA would look for someone to pay for it.  Obviously if your estate is more than your home they will take that, if you're not living in your home they will force that to be sold.  If more money is required they will go to those you gave your money to for payment even if they've already spent it.

Kirkmain

Brie said:

If your talking about a few hundred to a few people every year then there may not be an issue.  If you mean giving away a million or two there would.  

You would still be eligible for care but the LA would look for someone to pay for it.  Obviously if your estate is more than your home they will take that, if you're not living in your home they will force that to be sold.  If more money is required they will go to those you gave your money to for payment even if they've already spent it.

But how would they know who I gave money to? Remember, I am needing care at this point, i probably have lost my faculties

Brie

Look at your bank statements to see who you made payments to.  Presumably they or someone will have authority to get all your bank statements back however many years and they'll just start badgering the people to whomever the payments were made.

And as much as we would all like to treat friends and family why wouldn't you want to be in the best facility you can afford?

p00hsticks

Kirkmain said:

Brie said:

If your talking about a few hundred to a few people every year then there may not be an issue.  If you mean giving away a million or two there would.  

You would still be eligible for care but the LA would look for someone to pay for it.  Obviously if your estate is more than your home they will take that, if you're not living in your home they will force that to be sold.  If more money is required they will go to those you gave your money to for payment even if they've already spent it.

But how would they know who I gave money to? Remember, I am needing care at this point, i probably have lost my faculties

I'm not sure that they'd have any right to go after friends, charities etc you'd previously given money to to ask them to fund your care - but they'd certainly look at  children or other  close relatives.  And if none of them play ball then I think you are likely to end up in the cheapest 'over my dead body' workhouse with a debt building up against any estate you have remaining,  

And by no means everyone in care has lost all their faculties- there are plenty in care homes who still have all their marbles but are just physically too frail / deaf / blind to look after themselves unattended, and are well aware of how well or poorly they are looked after while there ......

Kirkmain

Brie said:

Look at your bank statements to see who you made payments to.  Presumably they or someone will have authority to get all your bank statements back however many years and they'll just start badgering the people to whomever the payments were made.

And as much as we would all like to treat friends and family why wouldn't you want to be in the best facility you can afford?

That's the thing. I have seen friends go into facilities, paying through the nose. £1500per week in one case. In the room next to them, arguably with a nicer view. Getting the same care. The same activities, the same food. Only this fella gets it all for free. Why? Because he was smart enough to spend his money and live life, and treat his family as he went along. Never owned a property, only rented. But on chatting to him, this fella who gets his room for free has been on more foreign holidays than my mate who now has to pay with his estate when he dies. Make it make sense please

Brie

p00hsticks said:

Kirkmain said:

Brie said:

If your talking about a few hundred to a few people every year then there may not be an issue.  If you mean giving away a million or two there would.  

You would still be eligible for care but the LA would look for someone to pay for it.  Obviously if your estate is more than your home they will take that, if you're not living in your home they will force that to be sold.  If more money is required they will go to those you gave your money to for payment even if they've already spent it.

But how would they know who I gave money to? Remember, I am needing care at this point, i probably have lost my faculties

I'm not sure that they'd have any right to go after friends, charities etc you'd previously given money to to ask them to fund your care - but they'd certainly look at  children or other  close relatives.  And if none of them play ball then I think you are likely to end up in the cheapest 'over my dead body' workhouse with a debt building up against any estate you have remaining,  

And by no means everyone in care has lost all their faculties- there are plenty in care homes who still have all their marbles but are just physically too frail / deaf / blind to look after themselves unattended, and are well aware of how well or poorly they are looked after while there ......

We were told by the LA that they would put a lien on our house to reclaim money for MiL's care.

Kirkmain

Brie said:

p00hsticks said:

Kirkmain said:

Brie said:

If your talking about a few hundred to a few people every year then there may not be an issue.  If you mean giving away a million or two there would.  

You would still be eligible for care but the LA would look for someone to pay for it.  Obviously if your estate is more than your home they will take that, if you're not living in your home they will force that to be sold.  If more money is required they will go to those you gave your money to for payment even if they've already spent it.

But how would they know who I gave money to? Remember, I am needing care at this point, i probably have lost my faculties

I'm not sure that they'd have any right to go after friends, charities etc you'd previously given money to to ask them to fund your care - but they'd certainly look at  children or other  close relatives.  And if none of them play ball then I think you are likely to end up in the cheapest 'over my dead body' workhouse with a debt building up against any estate you have remaining,  

And by no means everyone in care has lost all their faculties- there are plenty in care homes who still have all their marbles but are just physically too frail / deaf / blind to look after themselves unattended, and are well aware of how well or poorly they are looked after while there ......

We were told by the LA that they would put a lien on our house to reclaim money for MiL's care.

What's a lien

Brie

A lien is putting a charge against the house so that when it's sold a portion of the sale price is paid to a particular person/company.  MiL gave us £50k to pay for a house that we and she shared. LA said it was DOA.

HouseMartin567

Kirkmain said:

Brie said:

Look at your bank statements to see who you made payments to.  Presumably they or someone will have authority to get all your bank statements back however many years and they'll just start badgering the people to whomever the payments were made.

And as much as we would all like to treat friends and family why wouldn't you want to be in the best facility you can afford?

That's the thing. I have seen friends go into facilities, paying through the nose. £1500per week in one case. In the room next to them, arguably with a nicer view. Getting the same care. The same activities, the same food. Only this fella gets it all for free. Why? Because he was smart enough to spend his money and live life, and treat his family as he went along. Never owned a property, only rented. But on chatting to him, this fella who gets his room for free has been on more foreign holidays than my mate who now has to pay with his estate when he dies. Make it make sense please

In my experience, the situation you describe is a rarity, and that local authority funded care is likely to be on the lower class/quality of care home.

Kirkmain

Brie said:

A lien is putting a charge against the house so that when it's sold a portion of the sale price is paid to a particular person/company.  MiL gave us £50k to pay for a house that we and she shared. LA said it was DOA.

I'm sure you can argue that. Surely people are within their right to gift money to children to give them a leg up on the property ladder. Have you sought legal advice? What next, LA asking your daughter to busk on the street for money and pay it to them because your MIL gifted her a violin or paid for for music lessons?