PET's

getmore4less

securityguy wrote: »

It would be interesting to know how many people of an age to be giving maintenance or fee support to their university-aged children have any substantial records of the sums paid out. I certainly don't, and I'm currently paying out around £15k per year and am likely to pay out of the order of £100k over a seven year period. I know of a substantial number of students whose fees are being paid as well, so are in receipt of in excess of £20k per year from their parents.

I am fairly sure those payments come under another exemption and are not counted as gifts.

Much like the money you give you kids for school dinners.

Should not be hard to find...

Keep_pedalling

kkgree1 wrote: »

We've done PETs and the annual exemption gifts for my mother in law in the last 12 months. It takes some getting your head around but we have backed everything up with letters and on a spreadsheet (every POA spend) if it's needed when the time comes.

Sorry if I have misunderstood here, but a POA does not have the authority to make gifts for the purposes of making part of an estate PET, and can only gift the annual allowence if the donor had a history of doing so prior loosing their ability to manage their own affairs.

Yorkshireman99

kkgree1 wrote: »

I found the Gov.uk website very helpful when it came to working out gifts.

https://www.gov.uk/inheritance-tax/gifts

We've done PETs and the annual exemption gifts for my mother in law in the last 12 months. It takes some getting your head around but we have backed everything up with letters and on a spreadsheet (every POA spend) if it's needed when the time comes.

An LPOA does not usually allow the attorney to do this. small gifts similar to what has been done before are allowed.

kkgree1

Sorry wasn't clear in my post but she still has mental capacity so until this changes can make decisions on PET and annual gift allowances.

Yorkshireman99

kkgree1 wrote: »

Sorry wasn't clear in my post but she still has mental capacity so until this changes can make decisions on PET and annual gift allowances.

Thanks for clarifying that. You could arrange for her to give instructions now to make future gifts at yearly intervals.