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Discussion in 'Off Topic' started by abu13, 6 Nov 2019.
That’s on gifts in the seven years prior to death if their estate is over the double nil rate band (£650k) and refers to IHT and not long term care costs.
Inheritance tax rules.
Nothing to do with care costs.
Your problem is if your parents go into care the authorities have absolute power to investigate their accounts and they can decide the gifts were done to avoid care costs and take them into consideration as your parent's assets. There is no statute of limitations on this.
It is called deprivation of assets and is described here.
However If they have separate bank accounts they can each have £23250 in each account and not be eligible for care costs if one goes into care.
So if they only have £35000 of savings they just need to rearrange their bank accounts out of a joint account and put £17500 in two separate accounts.
This cannot be challenged because they aren’t removing assets, just organising them to their benefit.
The linked article is about tax avoidance.
The OP is concerned about care costs.
That’s totally irrelevant to the discussion I’m afraid mate and again talks about IHT.
IHT is not an issue for the OP.
You are right to seek proper advice as you don't want the shit to hit the fan in years to come .Plus you don't want to be in a position where you could be acused of using the money for your own purposes as it would be you and your wife drawing out the money .Make sure you receipt and document all transactions ..To be fair you will only be doing what 10s of thousands of other relatives do as oviously they don't want there life savings snatched from them .good luck with it.
Look into a trust fund. My mother opened one this year and it has given her peace of mind regards her assets etc
This is what concerns me most, we wouldn't be drawing the money out. Her mum and her husband would have the cards even though the account was in our name, in the event of anything happening to them i don't want my brother in laws family accusing us of dipping into the pot.