Hi, wondering if ayone could help me.I hold power of attourney for my grandmother who is in a residential home, currently with assets of about £15000. My grandfather and father passed away in short succession and I along with my brother are her only surviving relatives. My grandparents house was sold a few years ago after he died to pay for her residential fees, and her capital has decreased to the current amountAs power of attourney, is it legal for me to be able to gift the £3000 annual limit on her behalf to my brother and myself.Unsure, and if would feel strange taking money from her account to pay into mine, but otherwise the money will just be used in residential fees - something i'm sure my grandparents would not have been happy with.Thanks for your help,Dxi
"As power of attourney, is it legal for me to be able to gift the £3000 annual limit on her behalf to my brother and myself."I assume this is an EPA.The Guide is below and page 22 deals with gifts.:http://www.publicguardian.gov.uk/docs/EPA101-1007.pdfThe short answer is it is highly unlikely you'll be permitted to make gifts of the size stated. The £3,000 limit you mention is in connection with inheritance Tax and would not appear to be relevant.PD
As power of attourney, is it legal for me to be able to gift the £3000 annual limit on her behalf to my brother and myself.No - you need a court order for permission to do that.
I don't know about whether it is legal for you to transfer money from your grandmother to you within the Power of Attorney powers.But do be aware that when the money runs out and you ask Social Services to pay for the residential fees they will be very thorough in checking her finances. If it looks like her capital has been transferred to avoid paying the fees they may refuse to pay for her.Loir
If you are trying to avoid your grandmother losing her last assets, I am also fairly sure that gifts of this sort would still be taken into account when assessing her liability to pay residential fees. I seem to recall reading somewhere that when a person is assessed for their ability to pay, they cannot gift their assets in order to benefit.And there were a couple of high profile cases in the last couple of years where people were turfed out of residential homes because they could no longer pay.
Thanks for the help, that document makes the position clear.Dxi
"But do be aware that when the money runs out and you ask Social Services to pay for the residential fees they will be very thorough in checking her finances. If it looks like her capital has been transferred to avoid paying the fees they may refuse to pay for her."Deliberate deprivation is covered in this Guide:http://www.ageconcern.org.uk/AgeConcern/Documents/TRANSFEROFASSETSFS40JUN07.pdfIt appears only to be relevant "if you have more than £21,500 in capital" although "The upper capital limit may change in April 2008.". The OP stated the capital was now £15,000 and has been so reduced "to pay for her residential fees".PD
Thanks again - exactly what I was looking for.Orignally when her house was sold she had close to £70000 capital, which has declined over the last 5 years to the current amount with residential fees payments. Social services have already means tested and are partially covering the cost. I have full financial records, and have only ever given a few hundread pounds in total as Christmas/Birthday gifts over this period. Just wondered what magnitude of annual "gift" would be reasonable, and that has been answered in the EPA document. Regards,Dxi