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Original poster

Gifting whilst in a care home

14 replies

busy1234 · 10/09/2022 10:53

Hi, i have something thats been troubling me for weeks. My Mum and Dad have been giving me help with my housing costs for over 30 years. Now my father has passed away and my mother has recently gone into a care home. 2 queries here; when her funding runs out in approx 4 years time, will social services order me to pay this back? even though this arrangement was in place many years before Mum went into care?

OP posts:
LadyGardenersQuestionTime · 10/09/2022 10:56

I don't know - it could be viewed as deprivation of assets. Bumping for you. Suspect it's a very grey area.

Farahilda · 10/09/2022 10:58

It depends on the amount, and whether it's from her current income or from savings

HappyHamsters · 10/09/2022 10:59

How much is she gifting you, does it fall within the gifting and tax allowances

meateatingveggie · 10/09/2022 10:59

You need proper advice but I believe you can give away funds to support housing without it affecting tax or the ability to pay fees.

Original poster
busy1234 · 10/09/2022 11:10

It was from pensions, was doing it before her property even got sold x

OP posts:
Original poster
busy1234 · 10/09/2022 11:10

its £140 per month

OP posts:
RedHelenB · 10/09/2022 13:13

You'll be fine, you're allowed to give money to your children. £3000 per year is the level for it not to count for inheritance tax so that's some sort of guide as to what's deemed a reasonable amount as a gift

Seemslikeaniceday · 10/09/2022 13:26

I suggest you contact CAB who may be able to advise.

Happy to be corrected, I believe as this is a regular gift that can be afforded from income it is treated differently to one off gifts from savings.

However, as your Mum is now in a home, the priority for her income will be to fund that and so the monthly gifts to you may have to cease as it is no longer affordable.

mrsbyers · 10/09/2022 13:26

RedHelenB · 10/09/2022 13:13

You'll be fine, you're allowed to give money to your children. £3000 per year is the level for it not to count for inheritance tax so that's some sort of guide as to what's deemed a reasonable amount as a gift

I don’t think the issue is inheritance tax here but more that the asset base has been reduced and therefore money for care fees will run out sooner

Seemslikeaniceday · 10/09/2022 13:27

RedHelenB · 10/09/2022 13:13

You'll be fine, you're allowed to give money to your children. £3000 per year is the level for it not to count for inheritance tax so that's some sort of guide as to what's deemed a reasonable amount as a gift

This is about deprivation of assets which has different rules to Inheritance tax.

RedHelenB · 10/09/2022 13:34

Seemslikeaniceday · 10/09/2022 13:27

This is about deprivation of assets which has different rules to Inheritance tax.

Show quote history

I realise that, my point is that you are allowed to treat your kids and as a guide, £ 3000 is seen as reasonable when it comes to inheritance tax.

Helenloveslee4eva · 10/09/2022 13:40

You need legal Advice.
it’s complex not least because rules have changed over the time since the arrangement was set up - and you don’t want to be held to replay stuff prior to that if worst comes to the worst

rwalker · 10/09/2022 13:43

Get her to gift you as much as she can when it’s gone it’s gone

Original poster
busy1234 · 10/09/2022 14:44

Thank you - and everyone else for your help and advice. I think i will consider making an appoitment with a Solicitor to get it clarified.

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