Giving away money - do we both have to live for 7 years?

22BUK

My wife, who is much younger than me, wants to give a not inconsiderable sum to our son. If the money comes from her own account, do I have to survive for seven years as well as her?
What if it comes from a joint account but she signs the cheque herself?

I've searched everywhere to try and find the answer...

Thanks in advance.

[Deleted User]

will your assets be worth more than the IHT level?

Mojisola

Does it matter? Unless you're giving your son over £325,000, there won't be any liability on the first death.

If the survivor will have over £650,000 minus whatever the son is receiving then it would be worth doing some tax planning.

Mojisola

22BUK wrote: »

If the money comes from her own account, do I have to survive for seven years as well as her?

What if it comes from a joint account but she signs the cheque herself?

If you die first, money that your wife has given away out of her account will not be part of your estate and so not liable for inheritance tax.

It's a bit messier from joint accounts and would be better if it came from her account.

22BUK

Mojisola wrote: »

If you die first, money that your wife has given away out of her account will not be part of your estate and so not liable for inheritance tax.

It's a bit messier from joint accounts and would be better if it came from her account.

I guessed that it would be easier from her account but just wanted to see what the experts thought.

Many thanks!

Mojisola

22BUK wrote: »

I guessed that it would be easier from her account but just wanted to see what the experts thought.

It would be more complicated - joint accounts are owned by both parties and the money in a joint account automatically becomes the property of the survivor after the first death but there are other times when it would be assumed that each spouse owns half of the amount in the account.

Keep it simple and straightforward to reduce future problems.

A letter sent from your wife to your son (with a copy kept with her paperwork) saying that the money is a gift from her will also serve to make the matter clear.