Home carers advice

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Just picking up on this previously discussed topic as I have a related question.

My 91yr old generally fit and well MiL wishes to spend about £6k buying a car for our daughter. Our daughter needs a car for work and needs a replacement for her existing jalopy. My MiL wishes to help our daughter out. inheritance tax considerations will not apply - MiL assets are well within IT limits.

Looking to the future and any potential social care funding assessment she has to undergo, my MiL has asked me the best way of doing this…so for instance - my MiL could buy the car (though she doesn’t drive herself) and gift it to our daughter; she could simply gift our daughter the £6k; there could be others.

Less likely I suppose she could gift us the £6k and we buy the car and gift (or sell for a notional £1 say) it to our daughter, or we gift the £6k gifted to us to our daughter. I don’t know how such is viewed by a council if an assessment is required in the future.

Perhaps worth also noting that she has to date had no reason whatsoever for contacting the council in respect of social care or any other form of support and has not done so. And if it comes to it she is desperately keen to remain in her home if care is required.

Any thoughts I can pass on? If it matters not how she does it then that’s fine.
 
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IanM

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From recent experience, there is an asset threshold of £23500 for receiving funded care, but there are additional rules relating to the health of the person and their care needs. It also varies between authorities how this is managed.

Buy the car and worry about it afterwards.
 

Lord Tyrion

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First off, don't over complicate the moving of money or things of value. It looks suspicious, it creates questions. If your MiL wants to give her grand daughter a car, do it. Don't give it to you to give it to her.

Assesment. This really only kicks in when care home costs comes into play, not stay at home carers. My understanding is that they would look at money being spent that is significant and out of the ordinary. If your MiL was buying a car for everyone that red flags would be waved. Buying one car, £6k in value should be well within what is acceptable.

One thing to note, we have been through this recently, your MiL could give all of her money away, stuff the system. She then gets put in the home the council choose from their approved list. If she wants to stay in one down the road but out of budget then she can not. Having money spare gives her some freedom of choice, even if we are just talking about topping up what the council will pay. That is a pretty good thing to have. I'm not suggesting that is what your MiL is looking to do but just throwing it out there. My FiL is still very humpy about paying for his wifes care fees, full at the moment, it will be top up shortly. We keep telling him that their money allows them the luxury of choice and the alternatives are not always attractive.
 

pauldj42

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Be careful as there is limit to how much can be gifted to individuals per tax year and I believe it is only around £1000 PA for Children and £500.00 for Grandchildren, (birthday’s/christmas etc) this would only be looked at though should your MIL go in to care or even worse pass away in the next few years.

I believe the limits are there to prevent people trying to “hide” money etc.
 
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williamalex1

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Let her buy the car for your daughter out of her savings.
If she eventually has to go into care 6 grand isn't going to matter much.
I think there's level of savings that can't be taken for care home payment..
If she wants to buy anything it's up to her.
 

pauldj42

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Let her buy the car for your daughter out of her savings.
If she eventually has to go into care 6 grand isn't going to matter much.
I think there's level of savings that can't be taken for care home payment..
If she wants to buy anything it's up to her.
Without being rude mate, it really might not be that easy, we know silh also has a son, what if Grandma has other grandchildren and wants to give them 6K to be fair to all, 6K may not matter much, but 12, 18, etc might.

He’d be better off checking it out.
 

pauldj42

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Nothing to do with SILH if his MIL is of sound mind she can buy anyone a car anytime she likes.
Say hello to your MIL from me, I'll take a car too.
Lol
We are both trying to help, and he’s mentioned his care home concerns, therefore he has a genuine issue.
Saying she can buy anyone a car anytime she likes is just daft!

Apologies @SwingsitlikeHogan I’m out, I was only trying to help.
 
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Be careful as there is limit to how much can be gifted to individuals per tax year and I believe it is only around £1000 PA for Children and £500.00 for Grandchildren, (birthday’s/christmas etc) this would only be looked at though should your MIL go in to care or even worse pass away in the next few years.

I believe the limits are there to prevent people trying to “hide” money etc.
Is that not for inheritance tax purposes? I’m not aware of an ‘limit’ in respect of gifts from a social care costs POV but think that some form of ‘reasonableness‘ can come into play depending upon how the council involved plays things in respect of assessment and whether or not at the time of any gifts being made there is any sign of social care ‘need’. With my MiL there is no sign of need for any social care. Just that my MiL buying a car for my daughter as she needs one seems a ‘reasonable’ use of her savings, just giving my daughter £6k might not seem so reasonable if there is anything asked.
 
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We are both trying to help, and he’s mentioned his care home concerns, therefore he has a genuine issue.
Saying she can buy anyone a car anytime she likes is just daft!

Apologies @SwingsitlikeHogan I’m out, I was only trying to help.
Thats ok. All thoughts are welcome. I’m actually just thinking that my MiL gets on with doing whatever she wants to do with her cash in the bank…and we deal with whatever the future holds when the future reveals itself. And she might well also buy my lad a motor - though first she really does need to sort out her kitchen…😳
 

Lord Tyrion

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Thats ok. All thoughts are welcome. I’m actually just thinking that my MiL gets on with doing whatever she wants to do with her cash in the bank…and we deal with whatever the future holds when the future reveals itself. And she might well also buy my lad a motor - though first she really does need to sort out her kitchen…😳
My wife found Age UK very helpful with regards to advice on this and similar matters. They tended to be better informed than the various govt agencies who were supposed to deal with these things.

Might be worth giving them a ring if you are still a little wary.
 
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williamalex1

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Genuine question, I'm coming up for 75 and I'm defo not the healthiest or fittest in the world.
So how much of my 2 hundred grand savings am I allowed to spend, without permission or consequences.
Just in case I may need to go into a care home???.
 

GreiginFife

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Be careful as there is limit to how much can be gifted to individuals per tax year and I believe it is only around £1000 PA for Children and £500.00 for Grandchildren, (birthday’s/christmas etc) this would only be looked at though should your MIL go in to care or even worse pass away in the next few years.

I believe the limits are there to prevent people trying to “hide” money etc.
Never heard of this before, can you provide a link to the details as my dad (78) just bought a £18k Polo for my niece for her 25th.
 

IanM

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Is that not for inheritance tax purposes? I’m not aware of an ‘limit’ in respect of gifts from a social care costs POV but think that some form of ‘reasonableness‘ can come into play depending upon how the council involved plays things in respect of assessment and whether or not at the time of any gifts being made there is any sign of social care ‘need’. With my MiL there is no sign of need for any social care. Just that my MiL buying a car for my daughter as she needs one seems a ‘reasonable’ use of her savings, just giving my daughter £6k might not seem so reasonable if there is anything asked.

If claiming for funded-care, recent payments can be investigated, but you are not about to apply for that...

Genuine question, I'm coming up for 75 and I'm defo not the healthiest or fittest in the world.
So how much of my 2 hundred grand savings am I allowed to spend, without permission or consequences.
Just in case I may need to go into a care home???.
1) Get professional advice for that sort of amount.... across all facets, tax, care costs etc
2) Hi Dad, my car is looking a bit iffy! :)
 
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williamalex1

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If claiming for funded-care, recent payments can be investigated, but you are not about to apply for that...



1) Get professional advice for that sort of amount.... across all facets, tax, care costs etc
2) Hi Dad, my car is looking a bit iffy! :)
I didn't start the kidding pmsl.
 

pauldj42

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Lord Tyrion

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Genuine question, I'm coming up for 75 and I'm defo not the healthiest or fittest in the world.
So how much of my 2 hundred grand savings am I allowed to spend, without permission or consequences.
Just in case I may need to go into a care home???.
As much as you like. The only consequence is the level of care home the council choose for you rather than the one you would choose for yourself 🤔. How grim, or not, could the one they choose for you be?

If the savings are all yours, I don't know your marital status, dependents etc, then I wouldn't skimp on Tesco's saver brand at this point, have some fun with it. As Paul has pointed out though, if you start chucking it around wildly to family and friends then the 7yr inheritance tax rule may come into play. I hope not, for you 😁, but you did mention you weren't the healthiest 🤷‍♂️
 

pauldj42

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As much as you like. The only consequence is the level of care home the council choose for you rather than the one you would choose for yourself 🤔. How grim, or not, could the one they choose for you be?

If the savings are all yours, I don't know your marital status, dependents etc, then I wouldn't skimp on Tesco's saver brand at this point, have some fun with it. As Paul has pointed out though, if you start chucking it around wildly to family and friends then the 7yr inheritance tax rule may come into play. I hope not, for you 😁, but you did mention you weren't the healthiest 🤷‍♂️
Depends on Council area as well I believe, in 2019 when we the M-In-Laws health further deteriorated we, unfortunately, had to take a serious look at the possibility of her going in to a care home, Durham County Council stated to us they would require current Bank and Savings statements going back 3 years in case she had made any large withdrawls/payments during that period with the specific intention of avoiding Care Home Costs.🤷‍♂️
 
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