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If An Elderly Person Gives Away All Their Money To Their Children And Then They All Spend It All.

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dave50 | 12:33 Tue 11th Jun 2024 | Business & Finance
8 Answers

What happens if the elderly person has then to go in a care home and the children have spent everything, what happens then?



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The children have to pay or take Granny to live with them and care for her as they should have been doing 

Doesn't the 7-year rule apply?

Good afternoon,

I would suggest it depends if the elderly person has any other assets like a property, but also the time between the elderly person giving away their money and them needing to go into a home.

Long and short of it, they will still get care but some of their pension would be used as contribution.


7 years has nothing to do with it.

If it can be shown that depriving themselves of assets was a deliberate act to prevent having to pay care fees, they can be treated as if they still have those assets, whether it was 30 years ago or 30 days ago

Thing is - care costs / 7 year gift rule for IHT. How do "they" find out about such gifts?

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If it was less than 7 years when the money was given then totally spent, the care home would have to be paid for by the state because there is no money left anywhere.


The state would pay but make a claim against the eventual estate. If there was property that might pay some or all of it. If there's nothing in the estate then the carehome wouldn't get anything.

It's selfish though of the relatives. This can mean  the elderly person gets put in the cheapest accommodation when if they'd kept their money they would have had the choice of something better for their final months/years

If your council consider that you gave the money away to avoid the fees, they can calculate the fees you are charged as though you still have the money.

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