Cash gifts

okydoky

Some guidance on this would be appreciated.
Great grandfather is 90, lives alone in own property, with sons, grandchildren and now greatgrandchildren. Has built up savings which he now thinks should be passed on to family before he dies.
What are the limits and tax implications to him and recipients?
Thanks in advance.

Mojisola

Will his estate be liable for IHT?

Will he have enough money left to pay for any care that he might need in his last years?

okydoky

Total estate including residence less than £200K, half of this is the house.

Main reason he is able to continue in own house is the support of his family and he wishes now to reward this - so are there tax implications for him or the recipients, is what we are wondering.

Many thanks in anticipation.

Mojisola

No worries about IHT on an estate of £200,000 but he hasn't really got enough capital to start giving it away.

There's no tax implications for gifts but you need to understand the deprivation of capital rules. If he needs more help than the family are able to provide, he will be assessed to see how much he has to contribute. If he has given money away, he will be assessed as if he still had it.