Memorandum of Gift or Monetary Deed of Gift?

Jon12345

My parents want to gift £3,000 to myself, which is the annual exemption limit per parents. I need to have a legal document to record such a transaction.

What I am confused about is the difference (if any) between a Memorandum of Gift or Monetary Deed of Gift.

I don't want to use the latter if the former is technically different.

Anyone know?

Thanks,

Jon

00ec25

Jon12345 wrote: »

My parents want to gift £3,000 to myself, which is the annual exemption limit per parents. I need to have a legal document to record such a transaction.

What I am confused about is the difference (if any) between a Memorandum of Gift or Monetary Deed of Gift.

I don't want to use the latter if the former is technically different.

Anyone know?

Thanks,

Jon

are you in the UK or abroad?

if UK, "you" do not need a "legal document" for such a gift. A simple letter written and held by your parents as part of their "when I'm dead here's my paperwork to help my executor" file is all they need for IHT purposes

Keep_pedalling

According to a previous thread of yours your parents estate is well under their joint nil rate bands, so although they should still keep a record of any gifts to help their executor, nothing else is required. Even if their estate is over their nil rate bands you don’t need any such documentation.

https://forums.moneysavingexpert.com/discussion/5544172/reducing-inheritance-tax

SeniorSam

It may be helpful for your executors to have a copy of the bank statement when such large payments are made. Or some detail that will show from where and from whom, but as said above, if the estate value when death occurs is below the nil rate band allowance, it does not matter how much is given away. That is subject to the depravation of assets rule should care be required

Sam

SallySunshine

If this is from a joint account, then isn't the exemption gift limit £3000 per annum. per parent.
so in theory in this case it would be £1500 from each parent?

SeniorSam

That 's what we do when gifting to our children. A joint account will show the £3000 gift, which will be accepted as being from you both, £1500 each, so don't worry.

Sam