what to do with £170,000 ?

soweezy

mother in law is about to sell her house and rent a house she intends to buy when the owner decides to sell... they have 1 year to decide (the seller that is)

anyhow, what should she do with the £170,000 from the sale of her preoperty, but it has to be dispersed amongst family ?

what is the maximum tax free gift and does that apply to a couple or can she make a gift to both daughter and son in law seperately ?

it's a complicated senario but she has to give all of the money away, if possible, with the option to retrieve it if/when she buys a new property

ond/or what is the most profitable, safe, investment she should make ?

am I asking too much ?

debbie42

soweezy wrote: »

it's a complicated senario but she has to give all of the money away, if possible, with the option to retrieve it if/when she buys a new property

It isn't an unconditional gift, based on what you're saying.
There are also limits as to how much can be gifted each year for inheritance tax considerations.

baby_boomer

soweezy wrote: »

it's a complicated senario but she has to give all of the money away, if possible, with the option to retrieve it if/when she buys a new property

Only a loan achieves this.

Anything else is tax fraud.

webmasterpolo

Sounds like she needs to seek professional advice on IHT planning. This is a complex area and can be an expensive area to make a mistake in.

Why must she spread this around the family and not put it in a high interest saving account in her own name?

If she does plan on wanting it back to buy a new home, what time frame is this - more than 5 years? 10 years? 1 year?

She could always consider investments as well as savings if more than 5 years, based on what you've said that she needs the money back, something like a guaranteed fund might be a good idea for some of the money.

With house prices going up and down she needs to make sure that the £170K she has is still enough to buy another house in the future when she wants one, so keeping the money increasing in line with house prices is a major consideration.

Anyway theres some quick comments for you, hope it helps

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