Returning an unwanted gift of cash

Sea_Shell

What would happen if you received a substantial cash gift from a family member directly into your account that you wanted to refuse??

In the old days, they might have sent a cheque which you could have just not banked. Therefore not accepted it.

These days with the added implications of IHT, DoA,(or perhaps benefits)...are you able to just send it back to whence it came, without any detriment to your own circumstances? Or is the money deemed your asset as soon as it hits your account?

Sorry if this the wrong section to post under...at crosses many areas!! Banks, Family etc.

McKneff

The money is deemed yours when it hits your account so be careful if you are in receipt of any means tested benefits.

AnotherJoe

IANAL but ..... Send it back.
Should issues arise later, say IHT or benefits, point out it was a mistake and thus you didnt benefit from it since it went straight back. Very unlikely such would occur, how woudl anyone know or challenge you, given it did go back immediately.

Sea_Shell

What if you don't have their account details? Can you ask your bank to return the funds?

Keep_pedalling

Why not just gift it to a favourite charity?

jonesMUFCforever

1 You don't pay inheritance tax on gifts (the sender might have to).
2 I agree if you are on benefits there could be an issue if the amount takes you over capital limits.
3 Don't send it back without advising the family member first - just in case it is a scam (there are loads of various scams you can read on these boards)
4 At the end of the day it is your decision whether to accept the gift or not but think how much good you could do with it rather than rejecting it - for yourself you could pay off some debts or put some aside for a rainy day or as another poster has suggested pass it on to a good cause in your area.

Ben8282

You could try not giving the family member concerned your bank details then they won't be able to send the money!

masonic

Sea_Shell wrote: »

What if you don't have their account details?

Ask for them?

Flobberchops

Well OP, if you want to get rid of the offending sum quickly, efficiently and with the guarantee you'll never see it again, my account number is 58769403 and my sort code is...

Terry_Towelling

jonesMUFCforever wrote: »

You don't pay inheritance tax on gifts (the sender might have to).

I think there might be occasions where you could have to pay IHT on a gift you have received - but only if the giver has given away more than £325,000 in the 7 years prior to their death, and where those gifts don't meet any of the exemption criteria, and where the gift you received was one of those given after the £325K limit had already been breached. So, not very likely for most of us.

robatwork

Not often I see a question asked on here I haven't seen before so if this is real, then interesting quandary.

No advice, but would love to know the back story!