Will and inheritance

[sw67]

Around 3 years ago my Dad was getting advice regarding assets and potential care home fees. His lawyer advised against setting up a trust and suggested my parents leave 50% of all the assets to me and my brother in a will. Before he could complete this he died of a massive heart attack in 2016.


My Mum who is now 71 would like to carry out his wishes and transfer half the house worth £170k and half the cash in the bank £50k to us. My only concern is the council can claim depravation of assets in the future is she needs a care home.


The original will left everything to my Mum.


Is this feasible or should we look at alteratives

[megaphone]

You can arrange a 'Dead Of Variation', this will vary your father's will to benefit you, obviously you will need agreement from your mother.

I'm sure you want your mother to have the best care in her old age, either she pays for this, or you do. Not sure why you think the council (tax payers) should pay for your mother's care.

[PurpleMoonlight]

I think there is a two year time limit for a Deed of Variation.

[megaphone]

Alternatively your mother can just gift you the money/assets now.

[sw67]

megaphone said:

You can arrange a 'Dead Of Variation', this will vary your father's will to benefit you, obviously you will need agreement from your mother.

I'm sure you want your mother to have the best care in her old age, either she pays for this, or you do. Not sure why you think the council (tax payers) should pay for your mother's care.

This is more about her spending money on family rather than avoiding care home fees. She just has money she can never spend and would like it being used.

[ellroy]

PurpleMoonlight said:

I think there is a two year time limit for a Deed of Variation.

Correct 2 years. If the money is gifted by the OPs mother directly the LA could potentially view it as deliberate deprivation of assets. They can all take different views however.

A trust, where there is a reasonable issue, for example IHT, may help, but there’s no guarantees as the legislation, and interpretation, is somewhat muddy. As a result the LA could still levy a bill against residual estate.

[megaphone]

sw67 said:

megaphone said:

You can arrange a 'Dead Of Variation', this will vary your father's will to benefit you, obviously you will need agreement from your mother.

I'm sure you want your mother to have the best care in her old age, either she pays for this, or you do. Not sure why you think the council (tax payers) should pay for your mother's care.

This is more about her spending money on family rather than avoiding care home fees. She just has money she can never spend and would like it being used.

A gift is probably the easiest option. If she lives for 7 years then there will be no inheritance tax liable , that's if her estate is above the threshold which looks doubtful on the figures you gave.

If she ever needs care then either you or your brother can look after your mother, or you can pay for the care.

[Jeremy-75qq8]

The main defence to an allegation she has given away assets to then rely on state assistance is a calculation done at the time showing she still has sufficient money for her current and reasonably anticipated needs.

If she is leaving herself pennyless then it wont really work.

It is the same with giving money away. You cant give a gift with reservation ( ie still use the assets) so if she gives away the house she can’t live in it unless she pays a commercial rent if you wish to benefit from the 7 year no iht ( benefit starts at year 3).