Inheritance tax question

RAS

You need to pay mum's bills and debts from an account in her name.

You cannot even think about taking any action that might mitigate the IHT liability on her estate other than authorising the best care.

Hair done, teeth sorted, feet done, activities paid for, presents to grandkids in line with value prior to care, Christmas cards to old friends who value them, fine. Gifts to attorneys or funds diverted to attorneys, liable to investigation.

sheramber

frodobaggins997 said:

Hi yes the problem we have is even with the POA we seem to struggle setting up direct debits etc for her care fees from her account. And also the money being in her account on the interest will push her into taxable bracket with associated tax return required and associated accountant fees etc. We have been through quite a rigmarole last time we tried to pay from her account for things where even with POA we were being asked to prove that she has lost ability to make her own decisions, which then turned into a nightmare of who could then make than decision, the GP refused to write a letter saying it was not in their remit, the old peoples mental health team also said the same so we were at a loss as to who would make a determination of loss of capacity, even though she is at the stage where she can hardly speak and does not know where she is now. It has all been a bit of a nightmare!

According to NHS 

https://www.nhs.uk/conditions/dementia/care-and-support/legal-issues/#:~:text=Your doctor, social worker or,be in their best interests.

Your doctor, social worker or other medical professional can help assess mental capacity.

How to get a needs assessment

If you haven't already had a needs assessment, contact social services at your local council and ask for one. You can find your local council on the GOV.UK website.