Power of Attorney Gifts

Cubicsrube

If the gift would be for one of several children, doesn't this also trigger an issue of fairness with respect to any eventual inheritance? Assuming the will treats them equally and can't be changed now because the dad lacks capacity, then the sibling getting the gift would end up benefiting twice (assuming there are assets left on dad's death) - or being the only one to benefit (if care fees wipe out all the assets). If the dad passes within 7 years, then the gift could reduce his IHT exemption to the detriment of all beneficiaries.

I had a somewhat related situation, where my mother had been giving regular gifts out of income to one set of now-adult grandchildren for many years. After moving into a care home and seeing her savings rapidly deplete, we registered the LPA, put her house on the market and were in the process of deciding what to do with the regular gifts - recognising that, even though she had considerable assets at that point - her income vs expenditure picture had dramatically changed. My sibling and I agreed that, as her attorneys, we could no longer justify them, and from an IHT/inheritance perspective, if they continued, they would create an unfairness issue. Important to take a clear-eyed view of these things.

Spendless

It would be a No from me. I also wouldnt be assumming that aged 90+ in a care home with dementia means only there for a short while.

My grandmother with mixed dementia went into a care home a month before her 91st birthday and died 8 years later 5 weeks before her 99th.

You dont know how long his money needs to last to pay his fees.

elsien

https://forums.moneysavingexpert.com/discussion/comment/81955899#Comment_81955899

There is also an argument that with a proven history of gifting the relevant amounts and enough money to continue to do so then there would have been no issue with carrying on because it would have been both affordable and in line with your mother’s long standing wishes.
Inheritance tax is around her beneficiaries best interests, not necessarily hers.