Court of Protection, Guardian and gifts
Discussion
Just a quick bit of advice if anyone understands such things please.
I'm the Guardian for mothers estate, worth a bit.
As part of my Court of Protection guardianship, I'm able to give gifts.
My mum is bed ridden, lives in her own home and has carers which she entirely self funds.
As part of the duty, I have to make the most appropriate use of her money.
I'm an only child and so is she (as was my dad), there is no one else mentioned in the will.
The question is, technically the best use of her money would be to use less than 25% of it to pay my mortgage off (circa £100k), therefore:
Is this a gift, does it feel 'right'
Would she or I be liable for tax
Would her death in a set period of time following (could be days to years) change anything.
I'be been the guardian now for two years and continue to use her estate to pay for outrageous care fees.
Thoughts, if you have any?
Many thanks
Dundarach
I'm the Guardian for mothers estate, worth a bit.
As part of my Court of Protection guardianship, I'm able to give gifts.
My mum is bed ridden, lives in her own home and has carers which she entirely self funds.
As part of the duty, I have to make the most appropriate use of her money.
I'm an only child and so is she (as was my dad), there is no one else mentioned in the will.
The question is, technically the best use of her money would be to use less than 25% of it to pay my mortgage off (circa £100k), therefore:
Is this a gift, does it feel 'right'
Would she or I be liable for tax
Would her death in a set period of time following (could be days to years) change anything.
I'be been the guardian now for two years and continue to use her estate to pay for outrageous care fees.
Thoughts, if you have any?
Many thanks
Dundarach
keirik said:
Why would using her money, to pay your mortgage off, be best use of funds FOR HER?
She doesn't live there, so I can't see it myself.
Well exactly, other than upon her death the tax man will get possiblyShe doesn't live there, so I can't see it myself.
Or as another thought, if she's spent some now, the state would provide for her.
And another still is I'm her only next of kin.
Can I point out, I've not done this, hence just asking, however you've confirmed my thoughts to date.
I hate being a grown up!
And thanks for the reply!!
phumy said:
Gifting money from her to you "could"will be seen as deprivation of funds on her part, by the law.
Have a read hereEdited by phumy on Wednesday 1st May 08:09
https://www.gov.uk/government/publications/public-...
The best use of her money is to continue to fund her care and provide her security. You are responsible for allocating her funds to provide that.
I struggle to see how currently you having a chunk paid off your mortgage benefits her more than you? Unless it would free you up to spend more time caring for her directly through reducing working hours etc and even then I think you would still be on very shakey ground justifying it.
dundarach said:
keirik said:
Why would using her money, to pay your mortgage off, be best use of funds FOR HER?
She doesn't live there, so I can't see it myself.
Well exactly, other than upon her death the tax man will get possiblyShe doesn't live there, so I can't see it myself.
Or as another thought, if she's spent some now, the state would provide for her.
And another still is I'm her only next of kin.
Can I point out, I've not done this, hence just asking, however you've confirmed my thoughts to date.
I hate being a grown up!
And thanks for the reply!!
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