I want to pay off my son's mortgage
I am aware that if I help him out, such as by paying money
onto his bank account to meet their expenses, that will be regarded by DWP/HMRC
as “Income” and will compromise any benefits. I am also 99.9% sure that even using the HMRC permitted gifting rules (£3,000 a year from capital, regular gifts from my income providing my standard of living is not reduced as a consequence), it will be regarded as income and reduce any benefit entitlement.
It is further complicated that, sadly my wife died in June, and the intention always was, on the death of the first of us, to gift him and his sister some money (which will avoid Inheritance Tax if I survive 7 years). But I am again concerned that that giving him a lump sum to pay off part of the mortgage will also compromise any benefits he may be entitled to.
It would be helpful if I could use the lump sum gift to pay off a reasonbable chunk of his mortgage if I can pay it direct to the Mortgage Lender, not through him.
I would appreciate any advice or experience Forum Members
may have in this area:
1) It is possible for me to pay his mortgage lender direct and
2) Would that not be seen as a gift by DWP/HMRC, and therefore not negatively affect any benefits he may be entitled to?
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