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Gifted money vs Inheritence Tax
BarleyGB
Posts: 248 Forumite
All,
I would appreciate some advice/clarification.
I'm considering paying off a parents equity release, as the total sum is accruing quickly as at a high fixed interest rate.
Can this gift be considered against any potential future inheritance tax, and if so what do I need to do to ensure any necessary evidence/records are as HMRC would require?
Thanks in anticipation.
Edited to add: Assume straight forward inheritance (sole heir) as parent is widowed and I've no siblings.
I would appreciate some advice/clarification.
I'm considering paying off a parents equity release, as the total sum is accruing quickly as at a high fixed interest rate.
Can this gift be considered against any potential future inheritance tax, and if so what do I need to do to ensure any necessary evidence/records are as HMRC would require?
Thanks in anticipation.
Edited to add: Assume straight forward inheritance (sole heir) as parent is widowed and I've no siblings.
0
Comments
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Make it a loan to them, you could document it with a signed and witnessed statement and for belt and braces have a solicitor draw it up.
If you do it yourself, make sure the witnesses put their names in capitals as well as signatures, and date it.0 -
AnotherJoe wrote: »Make it a loan to them, you could document it with a signed and witnessed statement and for belt and braces have a solicitor draw it up.
If you do it yourself, make sure the witnesses put their names in capitals as well as signatures, and date it.
2nd that. Interest free and repayable on sale of house.0 -
Thank you both
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Edited to add: Assume straight forward inheritance (sole heir) as parent is widowed and I've no siblings.
There will be up to £1m nil rate band so IHT may not be an issue.
Loan gives some control over what that share of the asset base is used for
A loan also avoids the issues of a failed PET and inheriting the asset(counts double in your estate) if you both fail to live 7 years
Might be a good time to look at LPAs and both your wills.0 -
A loan also avoids the OPs money being "confiscated" for care home fees.0
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