Securing money (cash) to avoid potential care home charges
Discussion
Hi all,
Asking a question here on behalf of my Wife:
Her Parents have a six figure sum in their bank account, they would like to put it somewhere 'safe' in case one of them has to go into care at some stage.
They do not want to gift the money using the 7 year rule, not sure if they think they won't live long enough although I think they would easily.
There own house along with a flat they own are both in some kind of trust, so apparently these are protected.
Is it possible to put cash into a trust?
If so, will it be protected if one has to go into care?
I know there is a thread going about gifting a house, but this is cash so maybe different.
Thanks all in advance.
Asking a question here on behalf of my Wife:
Her Parents have a six figure sum in their bank account, they would like to put it somewhere 'safe' in case one of them has to go into care at some stage.
They do not want to gift the money using the 7 year rule, not sure if they think they won't live long enough although I think they would easily.
There own house along with a flat they own are both in some kind of trust, so apparently these are protected.
Is it possible to put cash into a trust?
If so, will it be protected if one has to go into care?
I know there is a thread going about gifting a house, but this is cash so maybe different.
Thanks all in advance.
Buy expensive watches/jewelry etc in a tax free place like Dubai. Take home and lock them up in distributed safe deposit boxes. "Forget" about them, leave a clue in your will only your heirs would understand as to how/where to access them for future sale/liquidation.
Not sure in the specifics of VAT on physical gold/loose diamonds, but a similar scheme could be made to work I'm sure
ETA: In fact here ya go, a $1.1m rough diamond ready to go. They've a few others too.
Not sure in the specifics of VAT on physical gold/loose diamonds, but a similar scheme could be made to work I'm sure
ETA: In fact here ya go, a $1.1m rough diamond ready to go. They've a few others too.
Edited by dvs_dave on Friday 10th June 02:05
How liquid do they need it to be?
If not very, then buy expensive watches/jewelry etc in a tax free place like Dubai. Take home and lock them up in distributed safe deposit boxes. "Forget" about them, leave a clue in your will only your heirs would understand as to how/where to access them for future sale/liquidation.
Not sure in the specifics of VAT on physical gold/loose diamonds, but a similar scheme could be made to work I'm sure
ETA: In fact here ya go, a $1.1m rough diamond ready to go. They've a few others too.
http://www.carat-diamonds.com/14231
If not very, then buy expensive watches/jewelry etc in a tax free place like Dubai. Take home and lock them up in distributed safe deposit boxes. "Forget" about them, leave a clue in your will only your heirs would understand as to how/where to access them for future sale/liquidation.
Not sure in the specifics of VAT on physical gold/loose diamonds, but a similar scheme could be made to work I'm sure
ETA: In fact here ya go, a $1.1m rough diamond ready to go. They've a few others too.
http://www.carat-diamonds.com/14231
Edited by dvs_dave on Friday 10th June 02:07
Countdown said:
Based on what OP is saying I think they don't want to gift it because they want to KEEP the money.
"gifting" is used to avoid IHT. The purpose in this case see,s to be avoiding having to fund their own care home fees rather than IHT planning.
Or in this case piss poor planning. Ie hoard cash until illness/old age sets in. Madness. If you trust your kids gift it while you are healthy, or simply spend it. "gifting" is used to avoid IHT. The purpose in this case see,s to be avoiding having to fund their own care home fees rather than IHT planning.
Buy a bigger house. If one of them goes into care the other gets to stay in the house.
If its both parents then they cannot keep the money and avoid paying for care. If they are going to try and hide they will have to lie to social services at some point, so they may as well keep it in a normal saving account.
If they don't want to keep any trace then they are probably best taking it all out and buying a bar of gold! They will still need to lie to social service though.
Care costs a fortune. We have two parents in care and the costs are well over £1000 per week.
If its both parents then they cannot keep the money and avoid paying for care. If they are going to try and hide they will have to lie to social services at some point, so they may as well keep it in a normal saving account.
If they don't want to keep any trace then they are probably best taking it all out and buying a bar of gold! They will still need to lie to social service though.
Care costs a fortune. We have two parents in care and the costs are well over £1000 per week.
Rangeroverover said:
If they have the assets they should pay for their own care homes, both my parents ended up in £1000+ per week care homes and had managed their finances and sold houses etc in order to fund it.
Why should the rest of us pay for their care
There does seem to be an entitlement mentality to family wealth. Why should the rest of us pay for their care
My parents are both in care with similar costs. There is no inheritance in my case, and my brother & I contribute to keeping them in a better place than a cheaper home. We are happy they are in a decent place.
jonny996 said:
here we go again, is it fashionable at the moment to publicly ask how to defraud the government.
If it's legal it's not fraud, any more than tax avoidance is tax evasion.I'm ambivalent on this. It's easy to say, with one's moral upstanding head on, 'People who have saved up must pay for their own care whilst The State will pay for the poor and feckless'.
And then you put your personal financial management head on and think 'Hang on, I stand to lose £100,000+. I wonder if I can save some of it?' It's an entirely natural wish.
Why shouldn't they pay? They may have worked hard (maybe not) to earn the money they have saved however why should taxpayers then fund their old-age care so their children can ultimately benefit? Awful attitude.
I think I'm also right in my understanding that the level of care provided if they pay will be significantly better and more flexible than if they allowed the local authority to fund it.
I think I'm also right in my understanding that the level of care provided if they pay will be significantly better and more flexible than if they allowed the local authority to fund it.
Simpo Two said:
If it's legal it's not fraud, any more than tax avoidance is tax evasion.
I'm ambivalent on this. It's easy to say, with one's moral upstanding head on, 'People who have saved up must pay for their own care whilst The State will pay for the poor and feckless'.
And then you put your personal financial management head on and think 'Hang on, I stand to lose £100,000+. I wonder if I can save some of it?' It's an entirely natural wish.
At some point the question will be asked, are there any other assets that have been disposed of or gifted, your answer could very well land you in problems.I'm ambivalent on this. It's easy to say, with one's moral upstanding head on, 'People who have saved up must pay for their own care whilst The State will pay for the poor and feckless'.
And then you put your personal financial management head on and think 'Hang on, I stand to lose £100,000+. I wonder if I can save some of it?' It's an entirely natural wish.
Remember it's your parents money not yours, if there is any left then lucky you, meanwhile don't rely on it
Rangeroverover said:
If they have the assets they should pay for their own care homes, both my parents ended up in £1000+ per week care homes and had managed their finances and sold houses etc in order to fund it.
Why should the rest of us pay for their care
I agree on one hand, on the other, as someone mentioned, why should someone who has blown it all on nice holidays get free care whilst someone who has been careful all their life have to then pay for care?Why should the rest of us pay for their care
Hoofy said:
Rangeroverover said:
If they have the assets they should pay for their own care homes, both my parents ended up in £1000+ per week care homes and had managed their finances and sold houses etc in order to fund it.
Why should the rest of us pay for their care
I agree on one hand, on the other, as someone mentioned, why should someone who has blown it all on nice holidays get free care whilst someone who has been careful all their life have to then pay for care?Why should the rest of us pay for their care
Rangeroverover said:
If they have the assets they should pay for their own care homes, both my parents ended up in £1000+ per week care homes and had managed their finances and sold houses etc in order to fund it.
Why should the rest of us pay for their care
+1 Peope should pay for their own care and at whatever level they need!!Why should the rest of us pay for their care
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