Gifting inheritance

Tonearoma

I owe my sibling 14k of an inheritance.. which is in my bank account.. can I just give them the money? And because they're self employed, would that have implications? 

Many thanks

Tonearoma

As I (think) I understand it.. am I allowed to gift them 6k this year (including 3k for last year) and then 3k more part way through April? 

And will I have to wait another year before gifting some of the remaining 5k?

[Deleted User]

If it's inheritance, you need to give the whole sum to them at the earliest opportunity, not drag it.

Tonearoma

Of course, that is exactly what I'd like to do (and asap) but how does that look in the eyes of the law.. can I just give them the full amount without it looking like they're avoiding putting 14k through the books? 

Keep_pedalling

I am am making the assumption that you are the executor of an estate and your sibling is a beneficiary of that estate. First off that money should not be mixed with your own in your bank account you need to to transfer your sibling’s inheritance without any delay. It is not a gift it is their money, there are no tax implications for them so just transfer it to them.

Even if it were a gift from you there is no £3k minimum gift limit, or any tax to pay on gifts above that level. You need to read up on inheritance tax, the 7 year rule and PETs

Tonearoma

I have dabbled in the reading of the 7 year rule, not sure what PETs are though? (When I google it, I get results on polyethylene terephthalate and pets.. lol) 

I think what you're implying is that I could 'gift' them the whole amount, in one lump sum and so long as I'm around for 7 years, there's no questions asked? 
But can I just transfer this bank to bank? And wouldn't that look like they're not declaring work through their business... 

Apologies.. I find this quite complicated.. perhaps i should pay a solicitor or something?

[Deleted User]

Tonearoma said:

 perhaps i should pay a solicitor or something?

No.
Transfer them the money.  It's theirs and you need to give it to them as soon as possible.

Its not a gift and it's not paid work.

RAS

It is not a gift, it is their inheritance.

If you fail to pay them the whole sum promptly, they can sue you  for failing to administer the estate properly. Just make out a cheque to your brother and write a letter, saying, "here's your inheritance from auntie Rose". Or bank transfer with a note saying inheritance from Aunt Rose.

Today if possible.

Tonearoma

There is no 'will' no 'estate' so to speak.. nothing is written anywhere to suggest this money is legally theirs... and let me just reiterate, everything is completely open and transparent from their point of view..and I 100% wish to give them their money ASAP..  

So.. technically it looks like I'm just giving them 14k.. basically, from me to them  

Let's pretend it's not an inheritance.. so am I allowed to give them 14k just like that? 

Keep_pedalling

Tonearoma said:

There is no 'will' no 'estate' so to speak.. nothing is written anywhere to suggest this money is legally theirs... and let me just reiterate, everything is completely open and transparent from their point of view..and I 100% wish to give them their money ASAP..  

So.. technically it looks like I'm just giving them 14k.. basically, from me to them  

Let's pretend it's not an inheritance.. so am I allowed to give them 14k just like that? 

Can you please clarify where this money has come from please? If it is a gift from you then it is not an inheritance. If it is a share of money left by a parent or near relative who died intestate then it is an inheritance. In either case their is no tax issue for them. If it is a gift from you then part of it become a PET (potentially exempt transfer) but unless your estate is in IHT territory that is something you don’t need to concern yourself about.

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm04057

Tonearoma

Would just like clarify, i know what is morally correct.. now I'd just like someone to tell me what is legally correct.. 

I wish to pass this money on the very second I'm 100% certain my sibling or myself won't get in any trouble.. thanks