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Transfer of savings from Grandad to me

bored_of_debt
bored_of_debt Posts: 175 Forumite
in Pensions, annuities & retirement planning
If my Grandad was to transfer (give) his savings to me (£15K) what would be the implications? He's saved all of his life and now requires medical attention as well as my Nan but unless he has no money he has to pay from his savings...

The morality of this situation is not what I have posted to discuss so with respect please refrain from posting your views on that issue... I'm just looking to understand the tax implications...

Thanks in advance!
«1

Comments

  • lilac_lady
    lilac_lady Posts: 4,469 Forumite
    Is he not elegible for NHS treatment?
    " The greatest wealth is to live content with little."

         Plato


  • bored_of_debt
    bored_of_debt Posts: 175 Forumite
    lilac_lady wrote: »
    Is he not elegible for NHS treatment?

    I've just asked and it's something to do with care and Nan going in to care rather than hospital treatment...
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    If he should die within 7 years the money given to you may incounter Inheritence Tax depending on the value of his estate.
  • bored_of_debt
    bored_of_debt Posts: 175 Forumite
    Lokolo wrote: »
    If he should die within 7 years the money given to you may incounter Inheritence Tax depending on the value of his estate.

    So do you need to declare at the time of the transaction? He lives in a council flat (rented) and i think that this is all the savings he has...

    Whats the threshold? Is it £325,000...

    http://www.hmrc.gov.uk/inheritancetax/pass-money-property/intro-iht-plannning.htm
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    No. HMRC may look through his bank statements and look at where large sums of money have gone.

    I don't know loads on the subject though. But yes thats the inheritence limit before paying tax on anything over.

    Not sure if council houses count towards it or not.
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    Bored of Debt,
    There are many ways to give away money to family.
    This site will give you info.
    http://search.hmrc.gov.uk/kbroker/inldrev/inldrev/search.lsim?sr=0&nh=20&cs=iso-8859-1&sc=ir&ha=7&mt=0&qt=inheritance+gifts

    Avoidance is legal, evasion is illegal. ( Know what I mean, nudge-nudge, wink-wink.)

    Best of fortune.
  • Paul_Herring
    Paul_Herring Posts: 7,484 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    bored_of_debt wrote: »
    The morality of this situation is not what I have posted to discuss so with respect please refrain from posting your views on that issue...

    Ok then. It'd be deliberate deprivation of assets, and when found out would have to be returned.
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • jennifernil
    jennifernil Posts: 5,817 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    Surely, if he owns no property and only has £15k savings, he will not have to pay for care?
  • Paul_Herring
    Paul_Herring Posts: 7,484 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    edited 25 June 2009 at 9:53PM
    jennifernil wrote: »
    Surely, if he owns no property and only has £15k savings, he will not have to pay for care?

    I get the feeling we aren't being given all the pertinent details.

    Lower limit is £14K, sliding scale up to £23K after which the claimant must be self funding until it drops to £23K

    Linky
    Conjugating the verb 'to be":
    -o I am humble -o You are attention seeking -o She is Nadine Dorries
  • EdInvestor
    EdInvestor Posts: 15,749 Forumite
    If the money is divided between two accounts in your 2 grandparents' separate names they will be able to keep it all as it will fall below the limits for free care. So no need to give the money to the OP.
    Trying to keep it simple...;)
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