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Gifts and deprivation of assets

Jill28

Registered User
Nov 26, 2015
1
NE Derbyshire
I have a slightly different question from Annie who has already started a thread about this.
My father has been in a care home for almost a year. He is self-funding for the moment and I have LPOA along with my brother and sister.
It was suggested to me yesterday by another resident's daughter that we can withdraw £3000 each financial year and up to £250 as birthday/Christmas gifts for family ( the three of us and 3 grand-daughters) from my father's account.
Is this correct or would it be seen as deprivation of assets by the LA?
My father used to give us money but can no longer make his wishes clear.
Thanks
 

Pete R

Registered User
Jul 26, 2014
2,038
Staffs
It was suggested to me yesterday by another resident's daughter that we can withdraw £3000 each financial year and up to £250 as birthday/Christmas gifts for family ( the three of us and 3 grand-daughters) from my father's account.
Is this correct or would it be seen as deprivation of assets by the LA?
What this other person has said is wrong. There are no set limits that can be withdrawn.

If you do decide to do it or something similar the LA will have to decide whether you/your Father has done this with the intention of avoiding paying for care. I think the old rules used to say gifts that were normally given were acceptable but the New Care Act makes no mention of that at all.

I think Annie's case may have been different as there was either property or capital involved and there was no likelihood of the LA getting involved.
 

min88cat

Registered User
Apr 6, 2010
581
I have a slightly different question from Annie who has already started a thread about this.
My father has been in a care home for almost a year. He is self-funding for the moment and I have LPOA along with my brother and sister.
It was suggested to me yesterday by another resident's daughter that we can withdraw £3000 each financial year and up to £250 as birthday/Christmas gifts for family ( the three of us and 3 grand-daughters) from my father's account.
Is this correct or would it be seen as deprivation of assets by the LA?
My father used to give us money but can no longer make his wishes clear.
Thanks
I think the figure of £3,000 each refers to the amount that someone can give way per year withou tax implications. Someone with a bit more knowledge will probably be along to confirm (or deny! ) this!!!!
What this person has suggested would be leading you into very dodgy waters, As attorneys, you must do everything in your father's best interests and giving his money away is most definitely not in his best interests or yours as attorneys.

You are allowed to give people presents in keeping with what your father used to do when he had capacity. Anything more would be considered as deprivation of assets should he need funding from the LA.
 

nitram

Registered User
Apr 6, 2011
19,890
North Manchester
The limits you stated relate to inheritance tax.

As far as the COP are concerned you can make reasonable gifts in line with previous years.

If his assets fall below the upper limit and an LA financial assessment becomes necessary the LA might consider this to be deliberate deprivation of assets, note the word deliberate.

If they do consider it to be deliberate deprivation and it occurred more than 6 months before the assessment the worst they can do is add the amount to his assessed capital as virtual capital.