to wonder how much inheritance

[hubgryhorse]

You need before you can safely assume you’ll still get a chunk despite potential care home fees? I read all the time on here that you shouldn’t rely on it etc etc and nasty comments are made about how you must be hoping your relatives dies 🤔

I always thought most people had an idea of what they may expect later on, whilst knowing there’s no guarantee for all sorts of reasons!

But with estates of 500k, 1mil, 2mil surely you can expect that not to be totally used on care homes?!

Having been through this process: DM was in a care home for almost 3 years, at a cost of about 60k a year. So 180k. House was sold to meet those fees at 450k. So my brother and myself got about 150k each from inheritance.

Everyone’s mileage varies but DM only went into a home when home care no longer worked for her. I think her 3 years was about an average length of stay so I’d expect you could depend on some inheritance when there’s over 250k of equity left in the house.

I am very grateful we both got something from her estate. It wasn’t enough to buy a house from scratch but it helped both of us climb the next rung of the housing ladder.

Sorry it was the query about renting the persons property out

Ah OK @RedTedBoom

I lost my mum 6 months ago. My dad made us fully aware of their position after she passed. My mum was very private. she wanted to ensure me and my siblings were looked after when both passed without us knowing.

my dad has now decided he would rather see us enjoy life. Do he has gifted half if my mums money to us. My mum loved a very frugal life and surprised us all with her savings.

we have told my dad to enjoy his money. He says he will but has kept 1 property for us the sell when he dies. This will pay off my mortgage as a bonus. But not expected.

in a way we are not grabby or rich, but surprised with investments my parents did. We talked about it as we needed too. If my dad decided to blow all his money then I will be happy for him.

Why should a carer or nurse get a shit wage & pay more tax because someone else wants to protect their inheritance? Why should my neighbours’ children receive an inheritance and mine receive nothing because I unfortunately get an illness?

And why should my other neighbours’ children get an inheritance because their parent had all their end of life treatment and drugs paid for by the NHS? Why shouldn’t they have had to contribute from their savings.

Six years ago I would have said the same, but I now have an aunt in her 80s with advanced dementia who has been in a home for about five years. Another aunt of 90 is still at home but needs carers four times a day, which is expensive too. Another relative in her late 80s is only not in care because her equally old husband, in poor health himself, is still struggling to look after her at home, but will not be able to cope much longer.
As people live longer, the chances of them either losing their mobility or getting dementia or other debilitating illnesses are increasing rapidly.

so I’d expect you could depend on some inheritance when there’s over 250k of equity left in the house. You can’t depend on your parent having only an average length of stay.

Could anyone who bought an annuity to help pay care home fees say which companies they used or got quotes from.

Mum has gone into a care home 6 weeks ago after dad died and I would like to look at options she has to pay for it. I recall reading annuity rates are much better now that interest rates have gone up.

I just tried a couple of companies online calculators but I struggled to input her date of birth in them as the years didn't go low enough - she was born in the 1930s!

Buying an annuity for care home fees would be a huge gamble. My parents went into residential care together in April and were both dead by Christmas.

Best thing to do, is to make an investment into your children’s life decisions earlier in life. Maybe private education, maybe house deposits, load up their ISA’s, grandchild ISA’s, etc.

of course that’s for non property wealth.

If I was worth in excess of a million and needed care I'd not be scrimping and going for a lower end option so I could leave someone a large inheritance. Care standards are typically appalling so id be throwing as much money at it as I had, to get the highest level of comfort I could buy. I'd be your worst nightmare, living in the lap of luxury, burning through your free money!

This.

A poster after my own heart. That’s exactly how we feel.

Did they get to stay together?

Yes, adjoining rooms. I wouldn’t have contemplated it otherwise. No way were they going to pay £2k a week for workhouse conditions.

What makes you think that?!

Neither my parents and grandparents nor my husbands parents and grandparents ever had any care. One was in their 70s, one in their 90s and rest in their 80s when they died.

Yes, this is exactly what my mum has done. She has died years before we expected but she was keen we should have as much inheritance as possible when we need it most instead of in our 50s or whenever (sadly she has died when I am only 37, which I never imagined) and made investments for my two children too that also removed money from IHT liability (better with the grandchildren than the tax man, although I'm sure many here will disagree). Thanks to her generosity, I've had so much more freedom during these years of young kids than I would have otherwise. I've been able to work part time, we live in a large house we wouldn't have been able to afford otherwise, etc. I hope I can do that for my own DC and am going to start putting stuff in place now so that I can. Money is very often freedom in terms of decisions and lifestyle, and my mum was always of the opinion that that freedom is most valuable when you are starting a family, etc.

I googled to find an advisor/broker as there are so many confusing options. (The ones I used in the end were Blackstone Moregate who were fine.)

My dad has been in an expensive care home for 11 years now. He bought an annuity pretty much straight away for about 1/3 of the fees (because of the 'gamble' element). Some 5 years later, when he had lost mental capacity and I was running his finances, I bought him another annuity for about 1/2 the remaining difference between his pension income and the fees. It has broken even even including inflation so it turned out to be the right call. He's 95; still has some of the capital from his house-sale left.

a £1,000 per week
is £52,000 per annum
so 10years is £520,000.

most care homes round here are nearer £1500 a week so ten years there won’t be much change out of £800,000

That’s still lovely though, that they both went together. £2k a week is so much money though, I find it so hard to understand compared to how it is where I live. Sorry for the loss of your mum and dad, it must have been hard.

If your parents read this and see your attitude, you may well get nothing!

We recently did one if those will for £40 in return to a donation to charity. According to the solicitor who did it, rich people rarely pay inheritance tax as they take avoiding action. It’s the middle earners who pay the vast majority of inheritance tax.

https://www.independent.co.uk/news/uk/home-news/duke-of-westminster-son-avoids-inheritance-tax-billions-britains-richest-men-family-trusts-rules-gerald-cavendish-grosvenor-hugh-grosvenor-a7998246.html

Avoiding IHT is easy for landowners. My understanding is that, to avoid businesses not being able to be handed down through families, farms are not subject to IHT. As a result a lot of wealthy people tie their money up in farmland - a farmer friend of ours was offered a “too stupid to turn down” offer for his farmland (his children had no interest in taking it on) a few years ago and I suspect this is exactly what the buyer was looking to do.

There also exemptions for a large number of Aim listed companies, if one prefer equities or etf funds with minimising IHT as an objective.

Same rationale, to stop family owned companies being broken up and sold to settle the tax liability.

There’s a few other options too, but I wasn’t aware of the farmland angle. Thank you.