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Money gift/loan and IHT etc
CookieRose
Posts: 39 Forumite
Hi! Me again!
As we head towards starting the probate process, I need to understand better where I stand on money that my parents gave me four years ago in February, to help me buy my house. We're talking about £20k. Dad died in early April - leaving everything to my Mum. Where does this leave me/Mum in terms of the £20k? Do we have to declare it as part of his estate, as it was given by them both in theory?
I have a standing order to my parents current account (formerly a joint, now in Mum's name only) which has been running for several years. Not sure if this changes the "classification" of the cash that was given?
If we need to declare it, how is it treated in terms from a tax point of view?
Thanks!
As we head towards starting the probate process, I need to understand better where I stand on money that my parents gave me four years ago in February, to help me buy my house. We're talking about £20k. Dad died in early April - leaving everything to my Mum. Where does this leave me/Mum in terms of the £20k? Do we have to declare it as part of his estate, as it was given by them both in theory?
I have a standing order to my parents current account (formerly a joint, now in Mum's name only) which has been running for several years. Not sure if this changes the "classification" of the cash that was given?
If we need to declare it, how is it treated in terms from a tax point of view?
Thanks!
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Comments
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If I understand you correctly you are paying it back so it's a loan rather than a gift. Assuming this was a joint loan from them both then half of the outstanding loan should be declared as a debt against the estate.
Alternately, if you are still repaying your mother, you can treat it as a loan solely from her so no need to declare it at all.0 -
Deleted..........0
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Keep_pedalling wrote: »If I understand you correctly you are paying it back so it's a loan rather than a gift. Assuming this was a joint loan from them both then half of the outstanding loan should be declared as a debt against the estate.
Alternately, if you are still repaying your mother, you can treat it as a loan solely from her so no need to declare it at all.
I pay £50/month into their account and have done since before the money was transferred to me...basically as a way of paying them back for various bits of assistance they've given me over the years, helping to buy cars etc. But this £20k is obviously a significant chunk of moolah!
The payments are going to remain, so does this mean then that we don't need to declare it? Given the value of the payments I make, does that have any bearing on how it's viewed?
Thanks
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Yorkshireman99 wrote: »Deleted..........
Sorry, you've lost me!0
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