Giving gifts of money

[Tubbsy]

These are an approximation to the IHT rules, but as menitoned above the deprivation of asset rules really are the relevant ones.

The exempt gift rules are up to £3,000 to one person, and gifts to as many people as wanted in a tax year, there is no requirement for any of the people to be close family and there is no life expectancy requirement.

However regular gifts out of income can be made of any size.

The reference to IHT threshold is not relevant.

Larger gifts can be made and become exempt if the person survives for 7 years.

As is regularly stated on here, the IHT rules have no relevance for someone who can anticipate the need for monies being required for their care.

If you look at Court of Protection rulings regarding financial gifts, you'll see that life expectancy, iht threshold and the value of gifts and to whom are all relevant.

 

[Kevinl]

If you look at Court of Protection rulings regarding financial gifts, you'll see that life expectancy, iht threshold and the value of gifts and to whom are all relevant.

The situation here is a lasting power of attorney and the guidelines there say:
"Spending money on gifts or donations
The LPA might say what kind of gifts the donor wants you to give. This includes:
gifts given on occasions where you usually give gifts, such as a birthday or anniversary
giving money to charity
living at the donor’s property without paying market rent (the difference in rent counts as a gift)
If a gift or donation isn’t listed in the LPA, you can only give it if one of the following applies:
there’s evidence they would want to give it, for example they’ve given a similar gift in the past or a similar gift is in the donor’s will
the gift is to the donor’s friends or family members on an occasion such as a wedding, birthday or religious holiday
the donor was already giving it, for example paying someone’s school or university fees
You’ll need to apply to the Court of Protection if you want to make other types of gifts, for example an interest free loan."
So they would have to go to the CoP (time and cost). As the question was asked in the first place that would imply there is no history of it happening before otherwise they'd already know the answer. The other rule they may need to consider is that the holder/s of the LPA are not allowed to benefit from holding it, gifting yourself money is a benefit.
"You can be ordered to repay the donor’s money if you misuse it or make decisions to benefit yourself." Their bold not mine.
K

https://www.gov.uk/lasting-power-attorney-duties/property-financial-affairs