left 90k by grandmother

mn_windows

Hi there, long story short my grandmother was in a residential home, her home was sold to help pay after her savings depleted, unfortunately she passed away 8 months after being admitted into the home.
Her estate has a value of 297k and everything was left to my mum. My mum has agreed for the money to be split 3 ways between mum, my sister and myself probably about 90k each after expenses etc.
This money will be treated as a "gift" how do we go about not being taxed on the money gifted within the law ?

Regards
Sarah

Sea_Shell

Your Mum could look at doing a Deed of Variation, so the funds pass directly to you, as if you'd been a beneficiary.

mn_windows

Sea_Shell wrote: »

Your Mum could look at doing a Deed of Variation, so the funds pass directly to you, as if you'd been a beneficiary.

Would she have to do that at a solicitors ?

McKneff

How old is your mum,
Does she receive any benefits at all

00ec25

mn_windows wrote: »

Would she have to do that at a solicitors ?

if you have to ask that question then the answer is yes because you don't know how to do it, or how to look up how to teach yourself to do it

getmore4less

There is no tax on gifts that's one problem out the way.

The size of your mothers estate may make the use of a DOV to preserve her nil rate band for the next 7 years.

mn_windows

McKneff wrote: »

How old is your mum,
Does she receive any benefits at all

72 and no benefits just been diagnosed with vascular dementia...

mn_windows

getmore4less wrote: »

There is no tax on gifts that's one problem out the way.

The size of your mothers estate may make the use of a DOV to preserve her nil rate band for the next 7 years.

I understood it that there was a sliding scale on gifts but if my mum lives for 7 years after the gift then no tax will be paid ?

getmore4less

Gift not big enough to benefit from taper relief.

Any IHT would come from your mums estate if it was big enough.

how big is that now with this inheritance before gifts.

What nil rate band total will she have with residential and transferable if previous deceased spouse.

mn_windows

getmore4less wrote: »

Gift not big enough to benefit from taper relief.

Any IHT would come from your mums estate if it was big enough.

how big is that now with this inheritance before gifts. Mum and Dads house probably worth 220k savings of 50k and been left 280k from Nans will...

What nil rate band total will she have with residential and transferable if previous deceased spouse.

Not sure what this means, sorry

unholyangel

mn_windows wrote: »

72 and no benefits just been diagnosed with vascular dementia...

Get legal advice. Your mum doing a DoV in the circumstances could be argued as deliberate deprivation given her impending care needs.

In any event, the cost of legal advice compared to the sums involved would be negligible.