Parent selling property and giving money to children

Madjock

Hi

My mum is moving to a council bungalow and putting her house on the market. She and my father took out equity from the property some years ago, so the proceeds of the sale are likely to be about £40k after the company takes their chunk.

Mum wants to give each of us 4 children the money from the sale.

She will not ever go into a care home, so deprivation of assets shouldn't be an issue.

How much is she allowed to gift to each of us before she gets into any tax problems?

BitterAndTwisted

There will be no tax problems. As far as I know people can give what gifts of money they like to anyone they like. The only possible issues which could arise is if or when any of the givers or recipients should become dependent on means-tested State benefits.

Little_Mo_70

Madjock wrote: »

Hi

My mum is moving to a council bungalow and putting her house on the market. She and my father took out equity from the property some years ago, so the proceeds of the sale are likely to be about £40k after the company takes their chunk.

Mum wants to give each of us 4 children the money from the sale.

She will not ever go into a care home, so deprivation of assets shouldn't be an issue.

How much is she allowed to gift to each of us before she gets into any tax problems?

Perhaps this may help?
http://www.saga.co.uk/money/experts/tax-free-gifts-for-your-loved-ones.aspx

Madjock

Thank you so much! I'd looked at yougov, should've known not to look for answers there. Very useful website.

Fire_Fox

http://www.hmrc.gov.uk/inheritancetax/
http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm

martindow

Madjock wrote: »

She will not ever go into a care home, so deprivation of assets shouldn't be an issue.

None of us can tell what is awaiting us in the future. There is no knowing whether she might need assistance in her home or in a care home at some point.

McKneff

You cannot say with any certainty that she will 'never' go into a care home. None of us know what the future will bring.

Alzhiemers disease is a terrible afflication and all sorts of age degeneration can happen and some families just cannot cope.

My brother was only 49 when he was diagnosed with this disease, by the time he was 50 he was unmanageable and had to spend his last months in a care home, he died within 2 years of being diagnosed.

And if it does happen £40k would soon be swallowed up in fees.

Madjock

I know noone knows what is going to happen, but she really wouldn't ever go in a care home, I'd up sticks and move before I would let that happen and I think we all know she would never agree to it. She saw her own mum end up there and she still blames them for her mum's premature death (and she's pretty justified in that belief).

Anyway, thanks for the pointers to the right info.

McKneff

There is always the chance that she may, no matter how many times you say she wont,

martindow

Madjock wrote: »

I know noone knows what is going to happen, but she really wouldn't ever go in a care home, I'd up sticks and move before I would let that happen

As one who did up sticks, care needs can easily build up to a level where a relative cannot cope on their own.

As has been said dementia can cause people to become very difficult to deal with and impossible for a relation to deal with long term. There can be no option but a home. Carers coming to the house three times a day cost £700 a month. In a home it would that per week.

You cannot categorically say that care will never need to be paid for, just hope that it is not necessary.

shegar

McKneff wrote: »

There is always the chance that she may, no matter how many times you say she wont,

Yea too true, my hubby had a severe stroke 4 yrs ago at the age of 49, he has been at home with me for the past 3 , but im getting to the point of struggling to look after him......

Ive always said he
" would never be put in a home" , but now im not so sure, im getting burnt out and he as to go into respite nursing care one week every four, cos im totally runned out,its so very hard nursing someone 24/7.....Never say never.....