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Ask Jo C. Your Own Question
Jo C.
Jo C., Barrister
Category: Law
Satisfied Customers: 32177
Experience:  Over 5 years in practice
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I have a elderly relative who may have to go into a care home

Customer Question

I have a elderly relative who may have to go into a care home shortly. Can he give
financial gifts at this stage i.e. £3000 tax free to grandchildren?
Submitted: 4 years ago.
Category: Law
Expert:  James Mather replied 4 years ago.
Thank you for your question here on Just answer. It is my pleasure to try and assist you with this today. Please bear with me if I need to ask for any further information from you in order for me to be able to advise you fully. My name is Law Denning and I am a practising solicitor. I have been an expert on this website in UK law since 2008. During that time, as you appreciate, I have answered thousands of questions from satisfied users on a variety of subjects.
Because we are all in practice with clients and court and other users, I might not always respond in minutes, particularly evenings and weekends. Please bear with me in that case. I will be online and off-line all day most weekdays and weekends.

Why are they going into a home?
Customer: replied 4 years ago.


Expert:  James Mather replied 4 years ago.

Is he aware of the nature of what he is doing? Would his doctor confirm that he is mentally capable?

How much are/is the persons assets /estate value?


Customer: replied 4 years ago.

Possibly not

£20 thousand in account , his property worth £110,000

Expert:  James Mather replied 4 years ago.

So if he does not know what he is doing, how can
he do this? Does anyone have a power of attorney? Is there more to this?

Customer: replied 4 years ago.

My wife

Expert:  James Mather replied 4 years ago.

I do need full answers please.

Does your wife have Power of Attorney,

or a

registered Lasting Power of attorney

or a

an unregistered Enduring Power of Attorney

or a

a registered Enduring Power of Attorney

are there any restrictions on any of them?

So is your wife wanting to give £3000 of her parents money to one
of your children?

If so, why?

Expert:  Clare replied 4 years ago.
Thank you for your question.
If he is ever likely to need Social Services to finance his care then I am afraid that he certainly cannot give that level of funds away - only gifts in line with gifts he used to give in the past.
This is in line with the fact that as his Attorney your wife can only take actions that are in HIS financial interest
The £3000 you are referring to woul donly be relevant if this was an estate that would attract Inheritance Tax - which this would not