Advice For My Dad Please

Chrismaths

Smarty - I'm not going to tell you what to do. You have been given the information - up to you I'm afraid.

Jake'sGran - Are you giving it away now or is this just your will? If it's just your will, then the PET 7 year rules are irrelevant.

Tiggs_2

OP....its your call.

as it stands the esate is only 300k (unless i missed something) so worse case is IHT of only £6k

if he wants to save every penny of POSSIBLE IHT then a deed of variation will sort the issue (but cost him £X to do it)

if it was MY dad (NOT ADVICE, just what I would do) i would not worry about £6k, tell him to give me as much as he could afford to and then go shopping.

The IHT issues are not significant here, get the money into the hands of those who he wants to have it and get on with life.....IF death happens with 7 years then yes, a small amount of tax will crop up.

Tiggs_2

Gran,

there is no prob with what you are doing (assuming the value of 50% the house + the cash gifts are under £285) There will be no IHT on your death .....IHT on your husbands depends on the value of what he's left with.

but solicitor is correct, i love my kids but not in a MILLION years would i give them 1% of my house let alone 50%. (JMO)

SMARTY29A_2

ta very much, will just advise him to give me and sis as much as he feels fit and the grandkids the same and then take it from there,

thank you all once again

Tiggs_2

sounds like a plan!

jamescredmond

Chrismaths wrote:

Taken with good grace I see! I'll stick to investment management, and you stick to fleecing grannies.

steady. the pair of you.

Jake'sGran

SMARTY29A wrote:

thank you for above replies.

i don't think he would go on a world cruise but you can never say never but he was thinking of maybe giving me and my sister a 10 K each and the grandchildren 1K each.

would this be okay to do this without tax implications

Yes, he can do that but if does not live for another seven years you and your sister will need to pay tax on the money you have received as already mentioned above. If he lives longer than seven years, no problem.

The money he gives away must have no detrimental effect on his standard of living. It really must be money he can genuinely do without. If he wants to start giving money away now without any worries at all, he can give £3000 each year. He will have to work out how he wants to split it.

SMARTY29A_2

okay thanks for advice

Jake'sGran

Tiggs wrote:

Gran,

there is no prob with what you are doing (assuming the value of 50% the house + the cash gifts are under £285) There will be no IHT on your death .....IHT on your husbands depends on the value of what he's left with.

but solicitor is correct, i love my kids but not in a MILLION years would i give them 1% of my house let alone 50%. (JMO)

Yes, the total value of what is proposed is less than the IHT threshold.
The house today is worth about £160-170 thousand

Tiggs, I would not have thought about doing this with the house except that I do not want to give the taxman any of my hard earned savings and I cannot see that I am likely to spend enough between now and when I pop off
to reduce my savings plus my half of the property to less than IHT. What would you do? Is the reason you wouldn't give any of the value of your house to your children because you believe they should look after themselves financially? Problem is, I don't want much; no world cruises, diamond rings, nothing like that. How would you do it?

SMARTY29A_2

dad has also suggested taking us all on holiday so that would be a good idea (and paying for it too!!)

just wish my mum had spent more since she died so suddenly