1. Expert Q&A: Protecting a person with dementia from financial abuse - Weds 26 June, 3:30-4:30 pm

    Financial abuse can have serious consequences for a person with dementia. Find out how to protect a person with dementia from financial abuse.

    Sam, our Knowledge Officer (Legal and Welfare Rights) is our expert on this topic. She will be here to answer your questions on Wednesday 26 June between 3:30 - 4:30 pm.

    You can either post questions >here< or email them to us at talkingpoint@alzheimers.org.uk and we'll answer as many as we can on the day.

Christmas gifts deprivation of assets?

Discussion in 'Legal and financial issues' started by Annie C, Nov 6, 2015.

  1. Annie C

    Annie C Registered User

    Oct 14, 2015
    39
    Wales
    My MIL wants to give her two sons £3000 each this Christmas and her two daughters-in-law, seven adult grandchildren and one great grandchild £500 each. She is convinced she will be dead within the year - and given her current state of health she could well be right - and has said that she wants to be generous while she's still around to see her family enjoy these small windfalls.

    Pertinent facts. Her estate is unlikely to be above the inheritance tax threshold unless house prices in her area rise significantly but she does have sufficient capital (over and above the value of her home) to be self funding for some time should she need to go into care. She was first referred to the memory clinic a few months ago and expects a formal dementia diagnosis on her next visit but for the time being she is definitely competent/competent in the moment. She has not given such large sums previously.

    I'm wondering if anyone can advise whether the LA would be likely to see this proposed gift giving as deprivation of capital if a few years down the line she has exhausted her resources and needs help to pay for care.

    Thank you for any help :)
     
  2. garnuft

    garnuft Registered User

    Sep 7, 2012
    6,589
    #2 garnuft, Nov 6, 2015
    Last edited: Nov 6, 2015
    Sorry, was on iPhone, mixed your post up with another.

    Still, it's worth noting that if your MIL was to require financial input from LA, there is no time limit to how far back they can look.


    Sent from my iPhone using Talking Point
     
  3. nitram

    nitram Registered User

    Apr 6, 2011
    18,371
    Male
    North Manchester
    Even if the LA did go back as far as the gifts the worst they could do, unless the gifts were very recent in which case they may try for repayment, would be to add £11000 as notional capital reducing the upper limit to £12250 and the lower to £3250.
     
  4. Beetroot

    Beetroot Registered User

    Aug 19, 2015
    363
    The LA has to look at when and why the donor makes the gift when deciding whether there was a deprivation of assets in order to defeat a personal contribution to care costs. You have said why your mil wants to make the gifts and it seems like the question of deprivation of assets isn't going to arise anyway.

    I'd get her to write a letter/send an email with the gifts saying why she's doing it - simple words, nothing fancy - and hold onto the copies.
     
  5. Pete R

    Pete R Registered User

    Jul 26, 2014
    2,046
    Staffs
    If these are normal gifts then let her do it.:)

    If these are above normal gifts then let her do it.:)

    If the LA ever get involved your Mother has £14250 to do with whatever she wishes. If they do deem the gifts as a deliberate act to avoid care home fees then they can try and take it out of that.

    Let her have the enjoyment whilst she can although I do hope her conviction of her demise is incorrect.
    :)
     
  6. Annie C

    Annie C Registered User

    Oct 14, 2015
    39
    Wales
    Thank you Beetroot and Pete R. I was offline for a few days and missed these replies but they're really helpful.
     
  7. meme

    meme Registered User

    Aug 29, 2011
    1,955
    Female
    London
    Let her spend her money as she wishes...x
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.