Q. Is it true that a gift cannot be included for any future financial care assessments, even I if live 7 years longer?
A. This is false.
The 7 year rule applies to gifts for Inheritance Tax purposes and does not relate to care. If you make a gift, such as gifting your home to your children, you can do so. There is no limit as such to how much you can gift, but there are rules that relate to gifts for Inheritance Tax purposes.
Whether you need a financial assessment in your own home or a care home, there is no time limit on which the local Authority could or could not look back at gifts made when assessing someone finance for care.
The Care Act contains a section regarding deprivation of assets and specialist advice should be sought.
To speak to a specialist about the rules around gifting for Inheritance Tax or any other queries regards gifting, please contact Michelle on 01902 392484.
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