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Legal, pensions and money

Deprivation of assets if you go on holiday?

(30 Posts)
mrsnonsmoker Tue 25-Jun-24 11:49:30

I'm 62 I have about £50k in a pension pot. I've already drawn on it once when I was 55, so every withdrawal from now on will be taxed, and I don't really want to use it to buy a tiny additional income. My plan was to rely on a few small lump sum withdrawals to cover things like house repairs, a second hand car and maybe a holiday or two over the next few years.

I'm assuming an essential cheap car and installing a downstairs toilet will be disregarded but has anyone had experience of being accused of deprivation of assets regarding care home fees if they simply went on holiday? I still work but I can't fund these extras from my salary as that only covers the mortgage (single divorcee, will be paying mortgage off till 75). What do Grans think?

Luckygirl3 Sun 30-Jun-24 09:00:47

They seldom look and in any event you can spend your own money as you wish. We can't live our later lives worrying about every penny we spend in case the LA might object further on down the line!
Even if they looked back they are only seeking large amounts given to family, or house put into someone else's name.
When we were in this situation the LA took our declared funds at face value ... for all they knew we could have recently sidelined millions! ... I wish!

Jane43 Sun 30-Jun-24 09:10:09

undines

Goodness! How old or infirm do you have to be before you are not allowed to give money away? I've just 'lent' my son a goodly sum towards his new house, following his divorce. I'm 73 and working full time - I never dreamt there would be any question that I could not give my money to anyone I wished!

You can give away what you want when you want, sorry to be morbid but it could incur inheritance tax if you die within seven years of gifting the money, the amount due is on a sliding scale
www.gov.uk/inheritance-tax/gifts
You can also gift £3000 a year without any tax implications.

Gundy Mon 01-Jul-24 20:08:58

No one should EVER criticize you for spending your money the way you want!

Everyone’s situation is different. You sound like a reasonable person and understand your limits and live within your means.

If you are still working, traveling on occasion is good mental health too. Go on a break every now and then.
Fie on anyone criticizing!! Petty people.

M0nica Tue 02-Jul-24 09:48:01

No one should EVER criticize you for spending your money the way you want!

Not sure about that. Talk to the lady posting about her DH running up huge debts as a result of which they have missed mortgage payments and now have to sell their house and have to leave a home she loes and has lived in for 25 years.

I can think of lots of other occasions where someone's decisions on how they spend their money, without any regard for those they support, has caused poverty and want for the rest of their family.