Money, residential care costs and LPAs

danco

https://forums.moneysavingexpert.com/discussion/comment/82094329#Comment_82094329

Can I jump into this thread, as I have a somewhat similar question. I am just about to set up a (new)LPA. I am not in care at present and hope not to be, but my assets are large enough to cover any foreseeable care costs.

I currently make regular payments to a friend who has almost no income. I note that Exodi's instructions say "if it is un my best interests, my attorney may make gifts..". That raises the question whether such payment would be regarded as in best interests or not, and it is not clear to me that such payments would ever be in best interests. I was thinking of saying that I regarded the continuation of the payments as being in my best interests.

(Moderators, break this into a new thread starting with Exodi's comment if you wish.)

elsien

Best interests takes into account the person’s past behaviour and wishes, as well as their current circumstances.
There is not a one size fits all. If you were a millionaire and had enough money to keep gifting at the previous level plus fund your own care for the next hundred years then clearly paying that money is in line with what you would have done if you still had capacity and so would be in your best interests because there is no conflict at all with your own present needs.
Have you read the OPG’s gift card that I linked to in a previous post?

danco

https://forums.moneysavingexpert.com/discussion/comment/82095516#Comment_82095516

Yes, I have read the OPG advice several times. I feel that the gifts would PROBABLY be allowable but not CERTAINLY.

I am inclined to put in the Preferences section of the LPA that I regard such payments as in my best interests. Or do you think that this might cause problems in registering the LPA.

Keep_pedalling

I would not add such a comment, it may indeed cause a problem.

danco

Yes, I am inclined to agree, it should not be on an official document. I can always have it written down in a personal letter to my attorneys.

elsien

You couldn’t say it would be in your best interests. Because that is making a judgement about the future, which is not possible
You could potentially put it in as a simple preference, that the giftgiving continues, which gives your power of attorney some discretion depending on the circumstances.

Secret2ndAccount

Are you able to buy your friend an annuity?

Sea_Shell

In a similar vein, is it a gift, if, after someone dies without assets, you decide to pay for their funeral, even though their is no legal obligation to do so?

Is it just another spend, or is it considered a gift to [the estate of] the deceased, for ones own IHT purposes?