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James Mather
James Mather,
Category: Law
Satisfied Customers: 22629
Experience:  Senior Partner at Berkson Wallace
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since going into a care home in 2005 my sister and I have spent

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since going into a care home in 2005 my sister and I have spent over £100,000 in care home fees, our Mum would be horrified! There is now little left, what can we do to minimise the damage to any inheritance? We're both executors and joint inheritors under the terms on Mum's will, we also have Ensuring POA over her monies but we're cautious and don't want to take any money out of her accounts in case this is deemed fraudulant. We also don't want everyhting to be lost in the care system either! We only give gifts at birthdays, Christmas etc, to the tune of £20 per person i.e grandchildren, can we increase this? HELP!!!!
How much roughly has your mother left?
Customer: replied 5 years ago.

About £200,000 total

The local authority can grab everything apart from the last £23,000!

You are only allowed to make gifts to the level of gift that your mother would normally have made .

I imagine that you have been looking
long and hard at this and have not come up with an answer. The reason is because
there is not one which works, if ever, it comes under scrutiny.

The situation is quite simply that if
any money is transferred to avoid paying care fees, the local authority can
apply to court to set the transfer of side and get the money back from whoever
received it.

In the event of special birthdays or
weddings. You may be able to make gifts of a few thousand pounds, but that is
about it.

Under the power of attorney, you can
only use your mother's money for things which she would use it for and for her
own benefit.

Indeed, you can only take reasonable
out-of-pocket expenses out of it.

I appreciate that this is not the
answer you wanted but there is no point in me misleading you.

Can I help further?

Please bear with me over the weekend
because I will be online and off-line doing "weekend things."

Please don't forget to positively rate
my answer service (even if it was not what you wanted to hear) and I will
follow up any further points you raise for free. If you don't rate it
positively, then the site keep your deposit and I get 0 for my time. If in
ratings you feel that you expected more or it only helped a little, please ask
me for further info before rating me negatively otherwise I don't get paid at
all for my time and answer.

The thread remains open.

James Mather and other Law Specialists are ready to help you
Customer: replied 5 years ago.

Can we move £3,000 per year as would happen to avoid inheritance tax? Mum started this prior to going into the care home and wanted this to continue?

Customer: replied 5 years ago.

Another quick query relating to the same, a grandchild marries this April, is the £2,500 stated as an exempt gift under inheritance tax rules allowed in this case? Would like at least to feel that someone in the family benefits!

I am not at my pc at the moment but will get back to you asap.
There are no similar rules but I think that the wedding gift would not be unreasonable. If you mother moved £3k per year to avoid care fees, then my answer is the same as in my last post. Risky.
Customer: replied 5 years ago.

Thank you very much, very helpful.

I am glad to help. I just wish I could give you better news or a magic solution. But, I am afraid that there is not one.