Gifting money from investments, advice please

happyhero

xylophone wrote: »

Is the house owned as joint tenants or tenants-in-common?

What is the value of the house?

What is the value of cash/assets owned solely by mother?

What is the value of cash/assets owned solely by father?

Are the investments held in ISA?

If not, do you understand the CGT implications of a gift?

Joint tenants

about £600,000 now although you would not believe it if you saw it, just the way stuff has gone, its only a 3 bed bungalow.

Mothers about £100,000
Fathers about £150,000

Yes all investments in ISAs, it was mostly already but I made sure we eventually got just about the lot in there.

Yes I think so, no CGT worries if in ISA's is that right?

xylophone

Then the simple answer would seem to be for mother and father each to sell investments to the value of half the amount required?

That way each of them keeps tax free income?

They might want to consider changing the ownership to tenants-in-common so that each can will half of the house independently?

http://www.theguardian.com/money/2014/aug/28/tenancy-common-care-home-fee-solution

The parents should see a solicitor expert in wills and trusts?

And father might outlive mother - I know of a couple where though both were frail and with health problems, it was the much younger of the two who died first, the older still battling on at the age of 94...

Re care needs see all information here http://www.theguardian.com/money/2014/aug/28/tenancy-common-care-home-fee-solution

After the big gift, and providing that it would not impact on their standard of living, the parents might wish to consider making gifts from income or using their gift allowance.

Do you have POA?

CLAPTON

xylophone wrote: »

Then the simple answer would seem to be for mother and father each to sell investments to the value of half the amount required?

That way each of them keeps tax free income?

They might want to consider changing the ownership to tenants-in-common so that each can will half of the house independently?

http://www.theguardian.com/money/2014/aug/28/tenancy-common-care-home-fee-solution

The parents should see a solicitor expert in wills and trusts?

And father might outlive mother - I know of a couple where though both were frail and with health problems, it was the much younger of the two who died first, the older still battling on at the age of 94...

Re care needs see all information here http://www.theguardian.com/money/2014/aug/28/tenancy-common-care-home-fee-solution

After the big gift, and providing that it would not impact on their standard of living, the parents might wish to consider making gifts from income or using their gift allowance.

Do you have POA?

Why ever would changing the 'joint tenants' to 'tenants in common' be an advantage

in most circumstances it would make the situation worse.


it would seem to me that a gift from a joint account might, in hindsight be from the survivor and not the first deceased.

xylophone

The parents might want to consider having the ability to will each half of the house independently - this might be of assistance if one parent died before the other and the surviving parent had later to go into a home.

This would mean that only the half of the house owned by that parent could be taken into consideration for care home fees but of course this might all change - see the Age UK link to which I referred.

Of course the CGT position for the child would need to be considered when the house was sold whether in or after the lifetime of the surviving parent.

The point is that the parents should take the advice of a solicitor experienced in wills and trusts ( as I said above) before taking any action.