Mortgage free dream setback? 12 September 2010 at 6:51PM in Mortgage-free wannabe 2 replies 695 views

angelicmandy

Hi all, I posted a couple of weeks ago. Basically, my partner & I would be hoping to either clear or bring down our mortgage as we are coming into some money shortly. However im concerned as to whether there will be any implications in receiving the money. Basically my partner's mother is being gifted £50k from her elderly sister who has inherited the money from her late son's estate. They have signed a Deed of variation in respect of this gift to protect the money. However, as my partner's mother has no use for such an amount herself she is intending on paying the sum to my partner after she has received it. Does anyone know if this would have any implications on my partner's mom gifting it to him. She is currently 71 & married. My partner is their only child. I wasnt sure if this was the right area of the forum to post this but wasnt sure where else to put it.

Any help much appreciated :A

babyb06

Without full details of the amounts involved it is hard to give a full answer but there should be no implications for your mum-in-law in gifting the money for you, however, if she dies within the 7 years after making the gift you could be liable to pay inheritance tax on that sum if her estate is over the inheritance tax threshold (currently £325,000).

Hope this helps!

angelicmandy

Hi, thanks babyb06. Ive heard something about the 7 year thing before. Im wondering it would apply if she needed to go into a home in that time too - Im presuming the authorities would come after myself & my partner rather than her ? I doubt her estate would be over £325k as they have already transferred their property to my partner so their own savings alone would not amount to £325,000