Paying someone else's funeral expenses

Linton

Yorkshireman99 wrote: »

That does count as a gift and needs to be declared. It is all very well glibly saying that HMR&C don't care but if they subsequently do investiagte the consequences can be costly and time consuming.

So any-one who pays for someone else's funeral is making a "gift" with potential IHT consequences? Perhaps this should be better publicised.

In practice I think it is certainly open to question (is it a benefit to the recipient?) and would predict that HMRC would never have the nerve to get case law clarification.

Yorkshireman99

Linton wrote: »

So any-one who pays for someone else's funeral is making a "gift" with potential IHT consequences? Perhaps this should be better publicised.

In practice I think it is certainly open to question (is it a benefit to the recipient?) and would predict that HMRC would never have the nerve to get case law clarification.

The HMR&C riules on gifts make no distiction on the subject. If the executor is in any doubt then they should ask. You may think it is a subject to be taken casually but people need to know what the law is. If they choose to ignore it that is their problem. To suggest that people giving good advice are doing it for their own amusement is offensive and unhelpful.

Mojisola

Linton wrote: »

So any-one who pays for someone else's funeral is making a "gift" with potential IHT consequences? Perhaps this should be better publicised.

This was a spouse paying for her husband's funeral - would that really be seen as a gift?

Linton

Yorkshireman99 wrote: »

The HMR&C riules on gifts make no distiction on the subject. If the executor is in any doubt then they should ask. You may think it is a subject to be taken casually but people need to know what the law is. If they choose to ignore it that is their problem. To suggest that people giving good advice are doing it for their own amusement is offensive and unhelpful.

I am questioning your absolute certainty as to what the law is. Over confidence in advice doesnt help anyone and in some circumstances could be dangerous.

If the matter is very important to the OP they should get take professional advice rather than rely on the views of unknown people on the net.

Yorkshireman99

Linton wrote: »

I am questioning your absolute certainty as to what the law is. Over confidence in advice doesnt help anyone and in some circumstances could be dangerous.

If the matter is very important to the OP they should get take professional advice rather than rely on the views of unknown people on the net.

I said nothing about absolute certainty and I have said many times people should not rely solely on advice from here or any other forum.

phillw

frogeyesimon wrote: »

Funeral cost was just short of £6k so there is presumably no issue with 2x gifts of £3k each to his estate?

It's not £3k each, you can give away up to £3k in a year.

Yorkshireman99

Exactly! The gifts of nursery care have to be included. The executors really need paid for professional advice.

getmore4less

childcare paid by grandparents can fall into the living expenses exemption