Inheritance Tax Question

uknick wrote: »

In that case IHT not a worry, just deprivation of assets if he needs to go into a care home. At this point I'd suggest you seek professional advice as to the best way to achieve what you want to do and avoid any risk of a care home fee liability for you and your brother. Off the top of my head I can't think of any legitimate way as you've already accepted your father can't look after himself and I'm sure the council would use this as evidence for deprivation of assets.

If you do look for professional advice I'd first look at organisations such as Age Uk, or Age Concern. They won't have an agenda to sell you a product which'll make them money. I say that because there are companies which will try to sell you some sort of trust to avoid care home fees, but I don't believe these have yet been successful when challenged by a council.


Good luck.

Deprivation of assets is only if it is intentional, if the family are not thinking about putting the father into a home, and are actively making other arrangements to care for him then it is not likely to be deprivation of assets.


Councils may attempt to claim giving assets to children is deprivation of assets, but it often isn't.


If the main reason for the transfer is to avoid IHT, then it isn't deprivation of assets.
Or if a child is struggling and you given them money to save their home being repossessed it isn't deprivation of assets.


If a family haven't thought about care home fees until someone mentions deprivation of assets, then it is unlikely that the reason for the gift is something that will give rise to deprivation of assets, as that not the intention of the gift.


As per age UK
What counts as deprivation of assets?

Deprivation of assets applies when you intentionally reduce your assets, such as money, property or income, so these won’t be included when the council calculates how much you need to pay towards the care you receive.
When your council is deciding whether getting rid of property and money has been a deliberate deprivation of assets, they will consider two things:

1. You must have known at the time you got rid of your property or money that you needed or may need care and support
2. Avoiding paying for care must have been a significant reason for giving away your home or reducing your savings