Gifts

[frazerd]

My Mother -in-law is in a home and paying for her care through the proceeds of the sale of her home. Her husband died some years ago. She has senile dementia and cannot make her own decisions. Her son is her trustee. Could he, to avoid the government taking all her income, 'gift' himself and his 2 sisters the �3000 government approved yearly gift allowance?

[dzug]

He would be in breach of his duty as a trustee if he did so. His duty is to his mother, not his mother's relatives.

[ali_alic]

But could he legally do so - I would be interested in the answer

[frazerd]

What I am implying is - could this be a way of his Mother spreading her estate amongst her family, as she would have wished, rather than the government suceeding in wresting more money from hard working people who have never leached off the state in their lives - unlike many of the homes occupants who don't have to contribute a penny but enjoy the same benefits.

[themas]

I understand your concern. A problem is that, if his mother's savings get used up to the point where she needs Social Services support for the fees, they will almost certainly inquire into what has happened to her money. They could well consider that giving away �3000 a year was not in her best interests and treat it as deprivation of capital, in which case they could refuse to make payments.

If her son is not concerned about this and has power of attorney (rather than being a trustee) he should look at the booklet issued by the Public Guardianship Office. This says he must consider the best interests of the donor, not take advantage to gain any benefit for himself, but that he does have very limited powers to make gifts to himself and others. He may need to talk to the Guardianship Office.

[Dollie]

Unfortunately for you, your mother in law cannot be seen to be disposing of her assets at this time. If it had have been done before she went into a home then that would be different. When she runs out of money to pay for her care and local government have to pick up the tab, then they will want to look at her accounts to check where he money has gone. When it becomes apparant that its been given away to a relative they will call on the relatives to pick up the bill. I know, because it happened to my husband a few years ago. Its classed as deliberately disposing of you assets when you have full knowledge that they are needed to pay for care. Sorry - unfair I know - but that I believe is accurate.