alternageek Posted February 22, 2011 Share Posted February 22, 2011 It's for my Mum living in Birmingham. She has MS and wants to be able to avoid having to sell her house to pay for her care home costs. She will have to sell if she has more than £27,000 in savings (homes included) Once the money has run out, the state will then pay (just make sure the home will do this, as not all will) for your Mothers costs. We went through this with my Grandfather and figured his house being worth £125K, he would run out of money in just about 4 and half years. Unfortunately he passed away before this could happen... Link to comment Share on other sites More sharing options...
Bassman62 Posted February 22, 2011 Share Posted February 22, 2011 As a result of this we all hold powers of attorney for each other in my family, just in case it is ever needed. It is important that you actually do trust the person that you're appointing as attorney if you're doing this though, because the attorney could do things like emptying your bank account, cancelling cards, amending tax and benefit data and the like. Yes you can do this and you may get away with it if you're the only benefeciery but as my mothers solicitor told me when my own mother granted power of attorney to me you can be asked to account for every penny you use, it is not a license to to help yourself. Link to comment Share on other sites More sharing options...
Rupert_Baehr Posted February 23, 2011 Share Posted February 23, 2011 ...Theres only one correct legal way to stop the sale of a home for care and it costs upwards of £300. You charge £300 to do a severance of joint tenancy? Link to comment Share on other sites More sharing options...
willman Posted February 23, 2011 Share Posted February 23, 2011 You charge £300 to do a severance of joint tenancy? Nope,neither do i offer to do them. A severance of joint tenancy stll offers no protection against care home costs. Link to comment Share on other sites More sharing options...
Grandad.Malky Posted February 23, 2011 Share Posted February 23, 2011 I know we are going off topic here but what happens if the person “spends” all their money or gives it away ……… you may not believe this but my mother had a visit from someone ( from the council ) to check she was getting all she was entitled to and they advised her to get rid of some money to take her below the allowed figure. Link to comment Share on other sites More sharing options...
willman Posted February 23, 2011 Share Posted February 23, 2011 you can only gift certain amounts per year. Link to comment Share on other sites More sharing options...
Grandad.Malky Posted February 23, 2011 Share Posted February 23, 2011 you can only gift certain amounts per year. Isn’t that for inheritance tax ( £325,000 ) I was thinking of more modest amounts in the 10’s of thousands. If probate wasn’t involved what powers do the council / government have to ask where the money went? Link to comment Share on other sites More sharing options...
willman Posted February 23, 2011 Share Posted February 23, 2011 there are set limits in the 000's of what you can gift to family members and it definitely isn't 10's of thousands either. Link to comment Share on other sites More sharing options...
Grandad.Malky Posted February 23, 2011 Share Posted February 23, 2011 there are set limits in the 000's of what you can gift to family members and it definitely isn't 10's of thousands either. As I understand it you can gift what you want the only problem is if you die within the next 7 years whereby it would be taxable. Inheritance Tax on gifts If you give money to your children or grandchildren (or to children you care for) Inheritance Tax exemptions may mean that tax does not have to be paid on it. If you die within seven years of giving the money there might be some Inheritance Tax to pay. http://www.direct.gov.uk/en/MoneyTaxAndBenefits/ManagingMoney/PlanningYourPersonalFinances/DG_10013916 Link to comment Share on other sites More sharing options...
willman Posted February 23, 2011 Share Posted February 23, 2011 As I understand it you can gift what you want the only problem is if you die within the next 7 years whereby it would be taxable. That would be true - but discussions have been regarding Care costs, so gifting money to avoid care costs is normally within the 7 years and can be countermanded by the local authoritites. deliberate deprivation of assets i believe is the terminology i think that was s used. there used to be set ammounts you could gift annually to children,grandchildren,@ weddings etc Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.