Money gifts before death


D

Derek F

A foolish friend who is 84 has given her sister in law (also 84) and her
husband a cheque for £127K to help them buy a bungalow suitable for
there aged needs. They actually phoned and asked her for the money
although they have never been close.
I think I am correct when pointing out to her that if she dies in the
next seven years that the money will still be part of her estate and
subject to inheritance tax. She asked how will it be known that she had
given it to them ?
My other though was that as her relatives who get a lot of day to day
help from social services that one or both of them will end up in a care
home and her hard earned cash will end up in council hands if the
property is sold to pay for their care.
Derek
 
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D

Derek F

Yep. And if she needs care and would otherwise fall under the asset
threshold for having it funded, it will be counted for that -
"deprivation of assets".
She won't run out of money unless she keeps on giving it away.
If there is the slightest suspicion, digging into her finances will be
done.
Presumably they are suspicious of anyone who leaves a considerable sum.
That, too, is an issue. It'll end up with the care home provider instead
of council funds, though, unless it's one of the very small number of
council-run homes.
I'm thinking that as they get other help from social services that they
would probably arrange for them to be placed in a care home. The sister
in law evidently already has dementia and is looked after by her husband.
Derek
 

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