Would There Be Tax To Pay?

kylie_206

Hi All,

Just wondered if somebody coudl answer me a question please.
Basically, my mother is inheriting about 200k, she wanted to do a deed of variation to give this directly to me. But I have been told she shouldn't do this (thanks to forum on here!) now as she claims benefits and could get into trouble for depriavation of capital.
The question is if she inherited the money and informed the correct authorities etc would she still be able to give me a largish amount of this inheritance "as a gift" or whatever the legal term is!? (It's basically for a house for myself and eventually my disabled sister).
Thank you for your time and help.

Valli

Reading between the lines here your mother would appear to want to use the money to provide a home for you that, in the fullness of time, your disabled sister will share with you (perhaps when mum can no longer care for her?)
If I am correct in this it might well be best if your mum seeks proper, formal advice pertinent to these particular circumstances, if, as I suspect, she is intending to make sure her disabled daughter has a home and care after your mum can not longer give it.
IF the person leaving the inheritance to your mother is alive the simplest thing would be to vary the will, leaving it to the disabled sibling but with you having power of attorney over it, in the even that your sibling cannot have control over the money. But it might be too late for that!.
If I am right in my assumptions this is probably a complicated case and one which would benefit from specific advice from a trusted and reputable FSA/accountant taking into account all the circumstances

CLAPTON

Depending upon the type of benefit being claimed, the person has to declare how much savings they have. The savings are given a 'notional' return which reduces the benefits.
You would need to check the specific details and see how this impacts on her benefits.

However, there is nothing to stop your mother giving what she likes to you or anyone else, its just that the benefits people will assume she has the full amount for the purposes of the benefit calculation.

I would suggest you consult the CAB or Age concern

kylie_206

Thank you for your replies.

Yes that is correct my sister will eventually be living with me, when my mother is unable to care for her/passes away.
The money inherited was from my late grandmother, the estate has not been finalised as yet.
My mother claims Income Support and Carers Allowance.
I have tried to contact CAB but have been unable to get an appointment for 4 weeks. I will keep trying though thank you.
Her solicitior advised her to do a deed of variation but as this could be seen as her depriving herself of capital in benefits agencies eyes I wouldn't want her to do that - even though her solicitor says there is no problem with doing it!
I don't know any Accountants but will probably try ringing around today to see if I can find her one.
Thank you for your help it's very much appreciated.

CLAPTON

The rules for a deed aof variation are different from that of a simple gift as witht a deeed of variation the money is never your mother's.

my answer was about making a gift... I'm afraid I don't know the legal implications of a deed of variation ..the solicitor may well be correct.
Age concern have a phone number.. maybe they could give advice over the phone.