'Gifting', attendance allowance and 'Deed of Variation'.

[Tony Heare]

Hi everyone, yes it's me again. Don't get much chance to visit this site as often as I'd like, BUT at least I get sense, help and a laugh, especially from Jude, Sheila and Norman, when I do. So, here goes:-

As per the subject matter, can anyone please give me any information at all about 'gifting', claiming attendance allowance and 'Deed of Variation'. I've seen these items mentioned regularly in different threads and replies and would like to know something in easy to understand, plain simple English please, not some solicitor gobbledy-gook (which costs me £130.00 an hour, for heaven's sake!!).

As I've mentioned before, my dad's house has sold and the proceeds now apparently go to the Court, for the local authority to make a charge for my mother's care home fees.

THE SYSTEM STINKS BIG TIME!!!!

By the way, check Norman's thread about lobbying your MP re free care for mental health persons.

 

[Kriss]

Gifting - I believe that a donor can "gift" up to £3,000 per year tax free. Any excuse such as Birthdays, Christmas, or just goodwill will count.

Attendance Allowance - if your Dad is in care he should be able to claim this, the rate would depend on the level of care required. My Aunt gets the higher allowance as she needs night time care due to wandering and occasional aggressive behaviour. Fill in the form with no holds barred - don't try to hide the things you find embarrassing or unpleasant - put it all down!

Deed of Variation - I think this allows the sole/main beneficiary of a will to change its contents within a set period of the donor dying. Usually used to minimise tax liabilities at the time of transfer.

An independent Financial Advisor will help with Gifting and DoV. They are well worth using.

Kriss

 

[Sheila]

Dear Tony, yes you do need to speak to someone really. I want to an IFA when mum's savings started nosediving at over a thousand plus a month. Attendance Allowance, Kriss is so right, tell them it all and make sure it's what happens on the worst of bad days! The problems you cope with every 24 hours, make them aware that theres no let up and no way of predicting needs. Don't forget how many changes of clothes etc through soiling, spills etc. and how many times they have to be prevented from coming to harm in any form. Gifting, three thousand is what I was told too. (But this is because over 3 you have to declare it at probate, below you don't, that's what the form says.) I don't know a thing about Deed of Variation, but if you wait till Monday we can maybe ask the office or something to give us some idea. Thanks for the kind words by the way. It is as you say, so unfair, I have a rant too every so often. I haven't put a final figure on what mum paid for for all her care as yet, but when I do, I think it will make me hopping mad! Love, She. XX

 

[Kriss]

The magic £3,000 figure is a general Inland Revenue limit - anyone can give someone else £3k a year without incurring a tax penalty. Not just POA or COP situations.

Kriss

 

[Norman]

Kriss
is that not £3k every year,and cannot it be to more than one person,say two sons for instance?
Norman

 

[Kriss]

I'm fairly certain its £3k total ie need to divide say £1500 to each of 2 sons.

Yes, £3k per fiscal (tax) year but if it hasn't been done before then I think you can backdate 1 years worth - so could "give" £6,000 as a one off.

Kriss

 

[Jude]

Re Gifts:

I spoke to my Solicitor a while ago and he said that it was permissible for each parent to 'gift' £3000 per year. This effectively would mean that my parents could give £3000 each to myself and my brother. He also mentioned that once the POA was in operation, then a further sum of £3000 per parent would apply for the preceding years.

Jude

 

[Tony Heare]

Once again, thank you all very much for your time and info.

I have been in touch with an independent financial advisor and will be arranging a meeting with her when work allows, to discuss the above items.

It's difficult trying to make people understand my motives for doing this - I'm not money hungry, although it would certainly help, but I feel that the less the authorities get their hands on and the more I can legally obtain, the better all round.

Thankfully, I'm not in a position where I have to care for my mother 24/7, like most of you. She's in a nursing home and my dad died last Xmas, so, being an only child, it's all dropped onto my shoulders, so any information on any of the above is invaluable at the moment.


Once again, many thanks for all your help, whoever you are!!!!

 

[Jude]

Dear Tony,

Good luck with the meeting.

If your parents, [like mine] worked hard and saved all their lives to give their child/children a legacy in later years, then they would applaud your efforts to keep hold of as much of your inheritance as you possibly can.

Don't for one minute feel that you are being mercenary. I did for a while, but I've got over it now....! If it ever comes to a stand off between us and the Inland Revenue, then I'd rather give the balance to the AS quite frankly. At least we would have the satisfaction of knowing that the money would be used for a very good cause!

Jude

 

[Sheila]

Hi Tony, I second everything Jude says. I too am an only child and can understand how you may feel others see you, but just do your best and what you know your parents would want you to do. At the end of the day, your loyalty is to them, not the state! Love, She. XX

 

[Norman]

Tony
I am so pleased that you have found a financial advisor,I am sure you will not regret it.
They are on your side .your interests at heart and they know every move in the book(legal)
Good luck
Norman