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Mr L – dementia and IHT planning

Mr L is an 82 year old man, with two grown up sons who both live abroad. He has dementia and lacks capacity to manage his own finances. We were approached by his sons to become his Deputy as they did not feel that they could adequately deal with this themselves whilst living abroad. We made an application to the Court of Protection on their behalf and subsequently Philippa Barton was appointed as Deputy to Mr L.

Once appointed as Deputy, we were able to make full enquiries into his financial situation and into the care he needed to remain living in his home. We arranged for him to have a carer visit twice a day and a chaperone to ensure that he could visit the local day centre to go to his dance classes. We also contacted the DWP to ensure that he was receiving all of the benefits that he was entitled to.

A few years later, it became apparent that Mr L could not remain in his own home. We closely liaised with his sons and it was agreed that he would move to an appropriate care home, in the local area. It was also important that the home provided dance classes as Mr L loves to dance!

Once Mr L had moved we arranged for his property to be sold. After the sale of the property it became apparent that we should look into inheritance tax planning. Mr L left all his estate to his two sons. To try to save Mr L’s estate from a large IHT bill we made an application to the Court of Protection to make a lifetime gift of some of his assets to his sons. We ensured that he would have enough money to live on for the next 30 years and asked the Court to give the remainder to the sons. If Mr L lives longer than 7 years from the date of the gift, his estate will not be liable for any IHT, which is a considerable saving for his family.