Dad wants to help out with debt...is he allowed?

Clasics

CLAPTON wrote:

final post from me.....sorry I didnot notice the bit about your dad's estate being less than inherence tax threshold......so he can do what he wants without regard to any future Inherenance tax, so he can just give you £8,000 straight away if he wants.

Really? We live oop north, my dad has a 3 bed semi (my mother died 16 years ago and he still lives alone). I believe the inheritance threshold is 275,000, there is no way on earth that my dad's estate will be worth anything like that, CLAPTON. My real concern was the taxman seeing it as non-earned income etc (I'm not au fait with these things, as you can tell ) but I take it the rule about gifts is only in relation to inheritance tax? Many thanks for all the replies, this really is a top site! Believe me, the £8,000 WILL be paid back in some way and I will make sure my sister isn't out of pocket due to my stupidity. I guess you can call this my lightbulb moment. :j

heppy23

lipidicman wrote:

I also didn't mean to give you a hard time about paying the money back. However people who are rescued don't always learn their lesson. Another good idea might be to put some of the money that would have gone into repayments into a savings plan (kids education etc). Something that feels like you have had to make a sacrifice.....just my two cents anyway.....

I agree. I was bailed out of debt (only about £1100) by my Dad.
The repayments were erratic and in the end he wrote the debt off.

A few years ago I ended up in a position of needing to borrow money from him for a car and I was meticulous in paying him back.

I am not 100% sure I have learned my lesson BUT I have a feeling it wouldn't be third time lucky if I tried to borrow money from him in the future.

CLAPTON

for absolute clarity and for the avoidance of doubt, anyone can give any amount of money as a gift to anyone without any tax being paid. so yes your dad can give you £8,000 or any sum what so ever.
Now if you dad's estate will be eligible for inherence tax then there may be a charge on the estate ...as I've already said. If your name is Mills (husband of a female cabinet minister) then a gift of £385,000 from a business associate may be deemed to be taxable as here is some small suggestion of services rendered.
However, you're not being given £385,000 by a dodgy italian so you're alright.

very best wishes for the future

skintchick

What a lovely dad you have!! Make sure you treasure him.

margaretclare

Hi

It's your Dad's money. He earned it, he can do what he likes with it. Probably he sees that by giving you this money now it's a darned sight more use to you than it would be if he left it to you in his will. I'd hate to think that we lived in a country where the questions really had to be: '....is he allowed?' We still have some freedom to do what the heck we please with what is ours.

Having said all that, please do learn from your mistakes, don't take your Dad's goodwill for granted, and do treasure him, as skintchick has said.

Best wishes

Aunty Margaret

THE_LONE_RANGER_4

Final Post From Me On This Its Her Dads Money He Can Do With It What He Wants , I Just Gave My Opinion And Hope She Takes It On Board ,but I Come From The Alvin Hall School Of Thinking If I Borrowed From Parents You Give Every Penny Back,a Good Example Is My Nan Well Off, Yes ,So Are My Parents ,But She Is 96 If She Had Bailed Out Her Kids She Would Not Have The Lifestyle She Has Now ,Granted It Is All Thought Provoking and Martin Lewis: View Would Be Interesting Any WAY All The Best And I Hope Everything Works Out