Active discussions

Please or to access all these features

Talk
Elderly parents
Original poster

Gifting of money vs deprivation of assets

35 replies

ChristmasLightsLover · 22/11/2024 12:38

Please can someone suggest a good advisor - not sure if it should be legal or financial - to talk with about gifting money and avoiding deprivation of assets issues?

This feels like a minefield. We aren't sure on how to best go about this and want to get our ducks lined up.

If you've had experience please do tell me on what to look out for! Thank you.

OP posts:
MereDintofPandiculation · 24/11/2024 09:47

Salome61 · 23/11/2024 19:59

I have a financial advisor as I got a lump sum when my husband died. He said to keep at least £85K for possible care costs in the future.

I wonder how he came up with that figure? About 18months residential care assuming you haven’t taken a huge chunk out for domiciliary care beforehand

Harassedevictee · 23/11/2024 20:58

The key point is should your parents need care do they have enough to fund it?

Salome61 · 23/11/2024 19:59

I have a financial advisor as I got a lump sum when my husband died. He said to keep at least £85K for possible care costs in the future.

ClicketyClickPlusOne · 23/11/2024 09:07

AgeUK has a good information page on their website.

Basically if you give away money / assets when there is not yet any indication that the donor needs care, and do not give away assets for the purpose of avoiding care fees you are ok. So a fit and healthy (albeit older / old) person giving money to offspring for a house deposit, car , school fees, new roof etc is ok.

I wanted to know I could have a choice of home for my parents, or that they had enough savings / equity to pay for good care at home. Peace of mind.

Fireworknight · 23/11/2024 09:07

But couldn’t gifting of large money be seen as deprivation of assets?

MereDintofPandiculation · 23/11/2024 09:01

curious79 · 23/11/2024 08:57

One easily missed area of gifting is that of gifting regular amounts that come out of excess income?

For example, parents receive £4000 PCM in pension, they could give you £500 every month as long as that is from income that is leftover that they don’t need. But they have to do every month it can’t be one off amounts

That’s IHT rules again. Not sure it would escape deprivation of assets rulings.

MereDintofPandiculation · 23/11/2024 09:00

This article is more relevant to deprivation of assets.

The fact you are talking about an advisor suggests you are considering a large gift outside normal spending patterns. Th LA will certainly be interested in this.

Financial advisor is probably what you want, but ask around and make sure you have one who is genned up on deprivation of assets and not just trying to minimise IHT

Giving away assets when you need to pay for care

What happens if the council thinks you've deliberately reduced your financial assets to avoid care costs.

https://www.independentage.org/get-advice/health-and-care/paying-for-care/giving-away-assets-to-pay-for-care

curious79 · 23/11/2024 08:57

One easily missed area of gifting is that of gifting regular amounts that come out of excess income?

For example, parents receive £4000 PCM in pension, they could give you £500 every month as long as that is from income that is leftover that they don’t need. But they have to do every month it can’t be one off amounts

MereDintofPandiculation · 23/11/2024 08:56

That article is all about gifting within IHT rules. I can’t see that it says anything about deprivation of assets.

Swipe left for the next trending thread