Tax and Shared money from an Estate

yarrakid_2

Hi,

I am trying to work something out. My Mother died a year ago and the estate was wrapped up, sent via probate, IR (Inland Revenue) etc.. Now we are the stage were monies left after all the process is to come to my father.

Now I need someone bright to help me understand in laymans terms to what is to happen next.

We understand that this is to come to him, but what are the Tax impleations to him and for that matter for myslef and my brother, he wishes to divide the final amount out equally 3 ways. Herein lies a protential mine field, so I am told, my brother works so I guess that would count to his tax, but I am on benfits, Housing, Council Tax, Child Tax, Income Support. So would this have an effect on my outcome as well. ?

If anyone knows of such away - Legally of course that will not bring this on to the IR radar or if it does paying the basic or minimum amount of Tax on the share of the money to us.

Thanks in Advance

Simon :beer:

CLAPTON

if i understand you correctly your father inherited all your mother's estate.

he now wishes to give you and your brother some money.

how much approximately?

there are no tax implications about him giving your brother money... except for potential inheritance tax if your father dies within 7 years

similarly you do not have to pay any tax on the money either, however, I don't know how this affects benefits.

homer_j_3

I would seek professional financial advice.

Your fathers tax liability should only be that through the investments that he makes and if on benefits, he may be effected due to the increase in savings.

You can gift amounts to relatives and these are limited where you want no further tax liability. You can instigate policies last time I looked to combat against these liabilities but as you are probably gathering now - No post on here is going to be a replacement for professional advice. The amounts and personal scenarios of each individual involved mean that there are many variables which can change the solution.