I paid a contribution each month to my late mother's care home fees for the last 18 months of her life. She had insufficient monthly income to pay the fees, although she did own her bungalow, which was put on the market once it became clear that she would not be able to return to it, but did not sell during her lifetime.
I held a financial POA over her affairs throughout the period in question. The total of the payments amounts to in excess of £20k, on which IHT will be payable if relief is not given. At all times I acted in her best interests. There was no formal loan agreement in place although I have kept good records of each and every payment. I realise that this amount will need to go on IHT419, but i wondered if any practitioners could give me any guidance as to whether to show the amount under s1 of IHT419 "Money spent on the deceased's behalf" or s2 "Loans and liabilities". Obviously I want to maximise the chances of relief being granted. This must surely be a fairly common situation yet the guidance does not seem to cover this.
I would be most grateful for any assistance please in terms of presentation and/or description.
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