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Elderly parents

grandmothers cash gift to grandkids

7 replies

mouseymummy · 02/01/2014 13:33

I hope this is the right place to post this.

My grandma has given me and the rest of her grandchildren a cheque for £1000. There are 8 grandkids. She has also stated an intention to give her 6 great grandkids a cash gift in the near future.

Now, this money is going to be able to pay for redecorating my new house and also will pay for a new double pushchair for dd2 and ds and make my life so much easier but me and my dsil have been discussing it today and we've both wondered if this is ok.

My gran isn't a well woman, she has recently lost the ability to walk and her health is rapidly going down hill. She's currently in sheltered housing and we think there will be a possibility she will require more and more care over the next few months.

I know that you need money to pay for the care homes etc and that they look into finances.

Me and my siblings are concerned that by accepting this money we are setting my gran up for a difficult time receiving care, if she requires it.

Does anyone know if this is the case. Should we return the money to make life easier for my gran, no matter how offended she will likely be??

Tia

OP posts:
Pancakeflipper · 02/01/2014 13:37

It could be she is getting rid of money in her accounts now before she goes into care so that money goes to her loved ones rather than paying for care?

EasterHoliday · 02/01/2014 13:39

she's probably getting rid of it precisely so it doesn't go on care costs. It's declarable for IHT purposes if she dies within 7 years and her estate is over the threshold level (around £350k I think)

ShatnersBassoon · 02/01/2014 13:40

Assuming your gran is compos mentis, accept the gift.

AnnoyingOrange · 02/01/2014 14:11

Info from HMRC re cash gifts

www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

AnnoyingOrange · 02/01/2014 14:17

Info from age uk re deprecation of assets

www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/

mouseymummy · 02/01/2014 16:43

She's fully aware of everything around her.

Me and my dsil were thinking that its probably the case that's she's truing to avoid care costs but we don't want her to cause herself problems in the future.

Thank you for the links, from the brief look I've had, (my 15 mo is being a little bugger and refusing a nap) it looks ok for her to do this so I'll let my dsil have a proper look when she gets home from work.

Thanks all.

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