Can my Parents pay my Mortgage when SMI stops?

LisaSR

My SMI is stopping in April. I am in receipt of ESA (support group) and DLA (lower rate, but just about to move across to PIP pending assessment). I also get help with my council tax. I do not wish to have a loan/charge on my property if it can be avoided.

My Parents (late 70's) have been advised that they are allowed to 'gift' £3000 each, per year, without it affecting Inheritance Tax. I am an only child. If they each pay £3000 per year direct to my mortgage lender, will it affect my existing benefits? Would it be classed as 'income' if it is paid straight to my mortgage account and doesn't go via my own bank account? Hope you are able to help!

BorisThomson

Gifts from family are not classed as income, even if they come direct to you. There's no problem with them paying the mortgage for you.

[Deleted User]

The IHT gift limits would only apply if their estates are valuable enough to attract IHT.
Why would you not want a charge on your property in order to continue to get SMI?

LisaSR

At the moment the IHT limits would apply (though they believe the limit may well be changing in the near future and then they will probably be below the threshold). My mortgage is very small and ends in 7 years time. My parents would prefer to pay it using their gifting allowance, rather than me have another loan against the property. As they are in a financial position to be able to do this, it seems to be the sensible option. The question isn't really why I do or don't want to take out the loan, but whether my benefits will be affected if my parents pay my mortgage payments direct to the mortgage account.