Gift from parent to buy house

00ec25

Keep_pedalling wrote: »

If the gift is given as cash before the purchase of the new house it should not count as a gift with reservation.

the money from mother is intended to be used to provide a place for her to live

therefore what you suggest is a textbook scenario for POAT - pre owned asset tax, whose sole purpose is to catch situations where GWR has "failed"

GWR is much preferable to a POAT since a POAT means mother will have to pay income tax for every year she lives in "her" property. In contrast GWR she pays nothing until she is dead (and then only if her IHT estate is big enough).

Keep_pedalling

00ec25 wrote: »

the money from mother is intended to be used to provide a place for her to live

therefore what you suggest is a textbook scenario for POAT - pre owned asset tax, whose sole purpose is to catch situations where GWR has "failed"

GWR is much preferable to a POAT since a POAT means mother will have to pay income tax for every year she lives in "her" property. In contrast GWR she pays nothing until she is dead (and then only if her IHT estate is big enough).

Thanks for the clarification.

If the mother has other assets that take her estate into IHT territory, then I suppose another solution would be a gift from those assets that could at least pay off the current mortgage. They could then sell both houses and buy a new one together.

Alternately buy a pair of semis and live next door to each other, which would also have the advantage of giving everyone thei4 own space when they need it.

TrevorHampton

Thank you all on your advice.
My mother is elderly and needs a certain level of care, which my wife can handle at present. We want to leave at least half of money in case we can not look after in the near future and she needs to go into a home.
For me to go to the next stage, who is the best person to go on see, Tax Advisor or Solicitor?