Giving someone money

stumpy2k9

I currently live with my nan and help look after her. Mainly just taking her to appointments and doing shopping, cooking and keeping the house in order for her. It's the least I can do for her seen as though she brought me up after my mum died.

She recently iheriteted about £40,000. She has decided that she wants to give me half of this money. She plans on just writing me a cheque for it as she can't really get out with not being well.

What I want to know is, is there anything we should know about before she does this?

olias

Only if she is on any means tested benefits and it is construed that she is deliberately disposing of capital in order to help safeguard any means tested benefits she gets. There may also be an issue with IHT if she has assets over the IHT threshhold and dies within (I think) 7 years.

Also, if you are on any means tested benefits then obviously the cash this will give you may put you over the threshold for receiving these benefits.

Olias

LinasPilibaitisisbatman

Inheritance tax implications if she dies within the next 6/7 years.

Also would watch out if your gran is ill etc as other beneficiaries may claim that the money was conned out of her by you or she didnt have the capacity.

The best bet is ask a solicitor to draw up formal papers etc for it and explain the implications. It may cost a bit but better than just taking the cash then getting ballsed over if she croaks in 6 months.

dzug1

Two possible snags:

if she has considerable other assets as well there could be inheritance tax to pay if she dies within 7 years

if she has to go into care it can be regarded as deliberate deprivation of assets and the care home fees will be assessed as if she still had the money

That's not to say she should or shouldn't do it - but it needs to be taken ito account

stumpy2k9

Neither of us claim benefits. I work full time. My Nan is 71 and up until she inherited this money she had no savings, she is still paying her mortgage too. Although I think she only has a few thousand left to pay now, I'd say at most the house is only worth 85,000.

Her health has recently changed for the worst though, but I'm hoping she will pull through it though. Would help if doctors actually listened and made an effort.