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Gifting/Premium Bonds
nodough_2
Posts: 12 Forumite
My mother has £200k in the bank, she doesn't want to risk investing other than savings accounts and likes Premium Bonds but has her max £50k already. What would be the tax/legal/moral considerations of her gifting my sister and I £50k each which we could put in PBs for her? Fixed rate bonds for 2 years are miserly (she is 89) so might as well have a punt in PBs. Her total estate is about £285k so not liable for inheritance tax
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Comments
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No tax issues but such gifts could be considered to be deliberate deprivation of assets in the event that she needed more money than she had left to pay for care costs, although your reference to putting the money in PBs "for her" (rather than the money being an absolute gift in the usual sense) suggests that returning the money wouldn't be an issue? If it's some sort of loan arrangement that you have in mind then formalising it in writing would be worth it IMHO....1
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