Giving a child a lump sum?

EdInvestor

carolskianne wrote: »

My OH has MS and I suppose we'll have to throw ourselves on the mercy of the good old UK government...

You should be aware that if your OH needs full-time care, then the council will regard the gift of 100k to your son as "voluntary deprivation of assets" and will assess you for your contribution towards the cost as though you had not given this money away.It's not possible to avoid paying for care by doing this kind of thing.

It really is sensible to take professional advice.

seven-day-weekend

Have you made sure that you are claiming all the benefits you are entitled to?

carolskianne

Hang on a bit....we're not giving away our money to avoid paying for full time care..we've been in the system on and off over the years to understand enough about it..in acual fact quite the reverse, we're trying to find ourselves the best possible accommodation with family thrown in for a reasonable amount for hopefully the next 20 years...dont understand where you are coming from at all. If and when he requires full time care, I assume he'll be intitled to it..and not penalised for a decision we made some years earlier to find a secure place to live with a caring son and duaghter in law.

noh

I believe it may be a gift with reservation and therefore not IHT free after 7 years. If it is a condition of making this gift that you are allowed to live rent free then it is a gift with reservation. If the gift was made and you paid a market rent then then it would be free of IHT after 7 years.
As said previously you should take professional advice.
Nigel

Paul_Herring

Find an IFA (or possibly lawyer). Who is actually qualified in this area.

Not sure what 'the area' is called, but I'd give it a few days for dunstonh to possibly see this thread to tell you which.

Regardless, from your query, I'd be very adverse to acting on any advice (to go ahead with it,) given thus far....

egamar

Eeek!

This is getting a bit close to being at very cross-purposes. Those being:

1) The OP has a clear idea and intention of what they wish to do (give money to son) and sought advice on the tax implications - IHT basically and maybe CGT and Income Tax for the son.

2) The discussion has broadened out to include all sorts of other things - almost all ery valid in their own right but not necessarily pertinent or helpful to the OP (such as 'voluntary deprivation of assets' - which is a terribly important aspect of things like this) but is something the OP doesn't need (or indeed want) to think about.

I really wish the OP would take professional advice: unless a professional adviser comes along and posts his or her warranted advice for free ... let's leave it alone. The OP wants to do what the OP started off wanting to do now someone has given the information she wanted and she doesn't want to take advice to take advice.

That's the OPs choice. We run the risk of becoming intrusive and offensive if we carry on.

EdInvestor

The Op asked the question:

carolskianne wrote: »

My question is; we want to give then our rent in advance for life really say about £100,000, does this have any tax implications for either party or can we give it as a gift?

And the answer is yes, it does have tax (and other) implications and she should take professional advice.That's the bottom line really.

egamar

EdInvestor wrote: »

The Op asked the question:
....
And the answer is yes, it does have tax (and other) implications and she should take professional advice.That's the bottom line really.

I know, I know .... but the thread has broadened out beyond that into areas about long term health care and similar personal things (albeit relevant, but not in the OPs mind when she first asked for the advice she wanted to get and got) ....

I agree with you. But I think we should leave it there. That's all from me.

seven-day-weekend

Agree with egamar.

However, I mut just say again that I (and various others on this board) believe they should take professional advice.

They can still do what they want. They can simply do it in an informed manner.

egamar

seven-day-weekend wrote: »

Agree with egamar.

However, I mut just say again that I (and various others on this board) believe they should take professional advice.

They can still do what they want. They can simply do it in an informed manner.

Yup.

I lied: THIS is the last from me!