• Expert Q&A: Rare dementias - Tues 3 March, 3-4pm

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    You can either post your question >here< or email them to us at talkingpoint@alzheimers.org.uk and we'll be happy to ask them on your behalf.

Inheritance tax

Lynne3

Registered User
May 13, 2015
4
My mum is in a care home, but how do we know what is right as to having money from her accounts, such as birthdays, Christmas for the children which she always gave to I don't want to do anything illegal.
 

BeckyJan

Registered User
Nov 28, 2005
18,972
Derbyshire
As long is it a reasonable amount, the sort of figure she would have given normally, then there should be no problem. Its when you suddenly decide to give away much higher sums than would be expected from an elderly relative.
 

jenniferpa

Registered User
Jun 27, 2006
39,448
Do bear in mind that what might be OK as far as inheritance tax, may not be OK if you are a LPA or dealing with a local authority. The guidelines for inheritance tax and gifts are only applicable for that specific issue.
 

Soobee

Registered User
Aug 22, 2009
2,734
South
I told the Local Authority that my parents gave a certain amount in gifts every year and they accepted that amount without needing to see proof. I could have shown them that the same amount of cash had been taken out for years for Christmas and birthdays.

I think as long as you are able to show that this is a normal pattern of spending then it's not going to be a problem (within the guidelines of course)
 

Saffie

Registered User
Mar 26, 2011
22,506
Near Southampton
I told the Local Authority that my parents gave a certain amount in gifts every year and they accepted that amount without needing to see proof. I could have shown them that the same amount of cash had been taken out for years for Christmas and birthdays.

I think as long as you are able to show that this is a normal pattern of spending then it's not going to be a problem (within the guidelines of course)
Really? I'm stunned by that Soobee. That's very generous and I doubt all LAs are so.
I'm presuming the LA were contributing towards your parents' NH fees.
The only thing that my LA would accept as a deduction from Dave's capital, apart from the prepaid funeral, were essential repairs to the house and not even upkeep, e.g I was able to deduct for the insertion of 4 new glass panes for blown windows but that was all.
I gave Dave's share of gifts for the family from his weekly allowance which I put into a BS account.

As you may know, they deducted over £5,000 from his £23, 250 because I had been using the joint account, which true, mainly consisted of Dave's income, for paying utility bills when he was self-funding and before the LA were involved - even though the OPG were more than happy for me to carry on doing so once he was in the NH.

Should never have moved further south!!!
 
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