MIL gave is some money but is possibly going into a care home.

[JumpingDizzy]

Mil gave dh and I a large sum of money when she sold her house. She moved into rented to be nearer family.
I was dubious at time as she's in her late 80s. For all we would love to see her end her days at home this is rarely the case. My dm more or less did but died in hospital. But she had support at home. Dh and I and mil's other close family all still work.
Mil has been having respite in a local care home. She was reluctant at first but is now settling in. It's fantastic. Staff are great which is the main thing. There's lots of activities and mil has made friends.
I've said to dh I think she'd be better off living there if she's up for it. It's much safer,she's eating regular, she's enjoying the activities and entertainment.
We know we'll have to give the money back she's given us. She still has over 100k in the bank. But once it gets to a certain amount they'll be looking for this. It's a shame as she'd be gutted if she knew we'll lose the money. We'd never tell her though. It was towards a house move to a better area which we're in the process of doing. We'll probably have to stop now though.
Has anyone experienced this? We're not sure what happens tbh.

Edited for spelling

I don’t think you have to give the monet back. If she dies within seven years of gifting this you have to pay the tax on it, but that is all. She can gift you money

You won’t have to give it back, it was a gift. If she dies within 7 years of the gift being received you will have to pay tax on it.

I would say if the 100K runs out you will have to use it to pay her care fees

That's what we thought.

How can people think you can gift your money away and not pay your care home fees - everyone would do that if it was the case. ?????/

You all replied as I was editing for mistakes. Thanks 😊

This could well be seen as DOA. What's the timeline from selling of house to gifting the money to moving to respite?

I was under the impression a gift before someone is ill doesn’t come under deprivation of assets.

According to age concern:

If you were fit and healthy, and couldn't have imagined needing care and support at the time, then it might not count as deprivation of assets

I think you'd be hard pressed to prove that someone in their late 80s wouldnt reasonably be expected to need some form of care.

They have to prove it was intentional
deprivation of assets to avoid care home fees. It’s a grey area.
If you had already spent it on a house purchase they would have no chance getting it back and if at the time it was given she couldn’t reasonably foresee the care home then that’s usually not challenged.

I wouldn’t give it back but I’d get some financial advice.

No hard or fast rules. Every case is examined on its own merits.

It's definitely a grey area with all of these different answers.

House was sold 2 years ago.

I wouldn’t give it back! Just keep going with house sale and if anything ever arises then deal with it.
Have you ever heard / known of anyone forced to sell their house to pay for their parents care home fees? I’ve not and really doubt they’d ever have the power to do that.
At most, like others said, it’ll probably be taxed.

So it's two years since she gave you the money?

If that's the case and she was competent at the time with no reason to suppose she'd need care I think the LA would have an uphill battle to show deprivation.

Would they though? Average life expectancy in England is around 82 for a woman so it could be argued that she wouldn’t expect to live more than seven years.

OP, I would get good legal advice on this.

If I were you I would keep hold of the cash so that if she runs through her £100k on fees, you know you can pay for her to stay in a decent home. No way I would allow a beloved parent’s care to be funded by the state, you have no control of the quality of what is deemed to be adequate.

Yes she gave us it 2 years ago. She desperately wants us to move.

We'll have enough to pay it back once ours is sold. I just don't feel keen to have no savings.

Her comfort is more important than money.

This care home is state funded. She wouldn't be going in any other. I'd rather give up work and care for her myself.

Yes, for me this is the bigger issue. If she has/had cash to pay for her care, that will give much more choice in making sure she gets the care you'd /she'd like.

For example, would the lovely home you've found be covered by the council, or would she have to move when the money runs out?

It's bigger than just hiding the money from the state.

She’s not losing the money. She will receive care with that money.

Why should the taxpayers pick up the bill while you get to keep the money? It’s that fair?

This is worth reading from age uk to see how it applies to your own situation

https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-care-home/deprivation-of-assets/

councils are pursuing potential DOA much more vigorously these days because they’re completely skint

You say the care is state funded?

This link may be useful to explain https://www.independentage.org/get-advice/health-and-care/paying-for-care/giving-away-assets-to-pay-for-care#:~:text=Deprivation%20of%20assets%20means%20you,that%20is%20out%20of%20character

And all those saying they have to pay tax if she dies within 7 years, His the son, so there is a large sum around £200, £300k i think) that he wont have to pay inheritance tax on

The care home is if you don't have the money.

@ChardonnaysBeastlyCat I don't get you? This isn't aibu I'm asking for advice.

Mil's care is paramount. She still has her faculties so will know we haven't moved as will be expecting to visit. I hate upsetting her she's so lovely.

Looks like it's better to wait though. I'm sure another house will come up? This one was perfect. Some work needed doing but it's so peaceful. She was so excited.