Leaving money to grandchildren

Galen

I think it will be wisely spent by my 2 daughters and 4 granddaughters.

Frank

What - Galen's fortune?

Don't do it, Galen - you have been warned!

It's ok! It's all left to the children, with allowable gifts to prevent IHT which my mean mother would never do!
Actually it's marginal and all because of the house which we bought for £45000 in 1978!

It is very good to be able to leave your money to whoever you like. Why not have the pleasure of treating family as you go along . Don't have that much but a 100 here and ther makes such a difference

I agree, Winefride! I really don't think it necessary to worry about leaving money to children or grandchildren. If there is a house, they will get that, I suppose.

However, I am very aware (before I am reminded,) of the need to provide for care, and again, it depends on one's circumstances.

Ariadne

You said ''I agree, Winefride! I really don't think it necessary to worry about leaving money to children or grandchildren. If there is a house, they will get that, I suppose''.

In our case my parents home had been built up through the efforts of 3 generations and to some extent myself as I went back to live with Dad after being widowed and inheriting my mother's half.

Dad tended to regard himself more as a guardian of the family wealth and was therefore obliged to pass it on.

We therefore tend to take every legal step to stop our properties being sold for care fees.

Frank

I had noticed that you had said that before, Frank - several times. Thank you for reminding us.

With ref. to what Frank has just said. I had a conversation with a Solicitor at the Which organisation. I asked her if I could protect my property ( for my DDs inheritance) by putting my next property ( I am moving) in their names.
She said it was a very grey area, and nobody was absolutely sure where you stand.
She said that some councils take the view that you have deliberately done this to avoid care home fees and refuse to fund you or even in some cases, refuse you a place in a council run home. And then other councils take no notice.
Anybody know any difference ?

Gerry always disappear's once he has instigated a conversation !!

petra

I do think councils try it on.
In a case I was involved in the daughter had been caring for her father for 3 years plus and had inherited her mother's half of the house and moved in. The father then had to go in to care. He had attacked 2 nurses and was obviously dangerous.
The social worker did tell her that the house would have to be sold and the proceeds divided.
She said the daughter should have known care was on the cards when she moved in and she said the council would argue deprivation of assets had happened because by moving in the daughter became an owner occupier which stopped the council selling the house.
Later it was found he was entitled to full NHS funding.
I know the father was disabled 3 years before but he could be handled at home so in my view care was not on the cards at that point.

Unfortunately there will be sons and daughters who own half of a parents house and when the parent is becoming ill they will move in to try and block the sale but I am unsure how this can be guarded against because I do know a daughter who got early retirement in London in March and she sold her house and moved in with her father in Birmingham and at that point the father appeared to be ok in my opinion, however dementia suddenly showed up and he was in care by the Christmas.
Again social services argued for the sale of the house but after threats of legal action etc full NHS funding was provided.

Frank

You can will your estate to anyone you want. Other individuals don't come into the equation.
How can you possible think that money left to grandparents makes them responsible for care home fees, what a nonsense that is.

what I meant to say was
How can you possibly think that money left to grandchildren makes them responsible for their parents care home fees.

jeanie99

I think Gerry is trying to say that the conventional route is for money to pass to the children and then the grandchildren and if this had happened the parents estate would have been above the inheritance tax limit and taxed at 40%.
Also you could get situations where a parent might not have any money having to go in to care but would have had money if the parent had left the estate to him / her.

As people are entitled to leave their estate to who ever they please I can not see how they could make a grandparent leave the money their children.

One situation I did hear of was a man was in care due to physical disabilities and at that point they split the house into tenants in common and the mother left her half to the daughter who was living in the house.
Sadly the mother passed away first and the council wanted the house sold and battled desperately for it but got nowhere as the daughter became an owner occupier on her death.

Frank

I am witrh Ariadne on this one. Hoping to spend it all and leave the house.
They call it ski-ing I think. Spending kids interitance. We have taken to ski-ing rather a lot of late.

Petra I spoke to my solicitor about this and she said the same. It's a grey area and 'has never been tested in law', so it's not as cut and dried as some seem to think.

There is no conventional route for leaving money or property you leave it to the cats home if you want.

If you don't leave a will and have no family the government will very happily take the value of your estate.

It's nothing to do with anyone where someones money goes and I for one have no interest in getting involved in debating this.