The Poolie Bunker

My mates mother who is 86 wanted to give her 5 grandbairns £5-000 each as a gift/crimbo prezzie and he said the bank blocked her from taking that amount of money out at 1 time.
When he asked why the bank said its the government stopping old people drawing out big amounts in case they need to be looked after in local care then that money should be used.
Surely this can't be true or is he pulling my Pi**er.

It's complete bollox, either the bank are acting illegally or your pisser is being well and truly pulled.

I believe that the local authority can look to claim back care home costs if "gifts" have been made in a time period preceeding the old person going into care if they think that money has been taken out in order to avoid having to pay the costs themselves.

The best thing to do is to speak to a solicitor who specialises in this field before making such gifts as there are ways and means to do it properly and reduce the risk of the local authority being able to make such claims. DO NOT however be fooled into thinking that any solicitor can do this as it is a very specialised field and I believe there is only one working in Hartlepool with the sufficient expertise even though the bigger firms like TBI and S&G will claim that they know what they're doing. PM or text me if you want contact details and I'll point you in the right direction.

bloody disgusting but thats the modern world, pisses me off that we don't look after the old properly. I'm sure they cannot stop you? She could do a transfer to their accounts rather than a withdrawal and get round the petty rules. Banks now seem to not want you to access your own funds, they think everybody is on the fiddle or money laundering.

My mam and dad did a power of attorney at a solicitors to me to stop anybody stepping in should they not be able to manage their own affairs. Agree with Mr Ripper that there is no such rules. Which bank is it?

When did they do it?

I think that the rules might have changed a bit in the last couple of years with regards enduring and lasting powers of attorney. It might be worth reviewing it with the solicitor who did it to ensure that it's still valid.

Will do mate-about four years ago, wasn't aware rules had changed. I'm an only child so rules of inheritance would be ok? They own out right so goling into a care home was an issue if it happens. Whatever the doc was passed legal title to me.

Am I right in thinking Mr Mouldy's mates mam could give cash as gifts and avoid inheritance tax etc while passing money on during her lifetime?

Potentially.

I'm NOT a solicitor, and like I said before the best thing to do is to speak to a solicitor who specialises in this and not one from one of the bigger firms who just claim that they do.

Will do! I'm fairly clued up but not a solicitor-I'll look into this. I think I'll die a pauper and avoid anybody taking the pennies off my eyes-your reward for working hard or owning something...some bastard wanting to fleece you.

Think that was her plan to dish out her savings before it was taken by the powers that be.
Seems strange that your money is not yours to do with as you please.

Agreed Mr Mouldy its a sad state of affairs, makes you wonder why you have savings and at 86 you should have no worries, as Mr Ripper says speak to a solicitor or even the CAB to clarify the situation.

The CAB wouldn't be worth bothering with as it's a specialist field and they'll just guess.

I can't really stress how important it is to speak to a SPECIALIST solicitor regarding this and not just any old solicitor who'll have a go at it, as if it's not done right it's not worth the paper it's written on and the local authority and the taxman will nail you (or your kids / other beneficiaries) later.

I'm actually thinking of paying off my mortgage and selling my house to my son (minimal cost to him £1) in the next couple of years. This is in case I end up in a care home and then I'm just living in a rented house this will stop the government/ care home using my house to pay for my care. I was told if I just simply signed it over to him then if I took in to care home within 7 years they still had the right to claim from the hou se. Now it was just a conversation, no actual expert advice, but if I do sell then I can sell for whatever price I wish. I then just live rent free for rest life. He gets house anyway as he my only child, he can then leave to grand-kids or I just sell to them for a £1, if that stops government / care home getting hold of it.

I believe that there are better ways of doing it Mr Bob, doing it your way would probably just open you up to the risk I mentioned in the post above this.

Right so Mouldy when you find the expert solicitor give me the name mate

PM sent to you Mr Bob.

Its my mate but i'll pass on all replys as they are very helpful.

Going back to the original post though, if she wanted to draw out £25,000 doesn't she (or anyone) need to give the bank notice of withdrawing such a large amount so they've got it in the branch. Was that reason she was stopped (hadn't given notice) or was she simply told she can't withdraw that amount in one go at anytime.

Maybe she has shown intrest in care homes and this has sent out alarms.