Gifting inheritance

Tonearoma

I was given the money by way of bonds many many years ago.. but it really belongs to us both.. there is no other money to be divided, just this 28k.. 

Thanks for your advice Keep-peddaling, looks like you understand things through the eyes of the law

RAS

That doesn't explain why you were given the bonds, or why you think it belongs to both of us?

Or why you've put your query on the wills and probate forum?

Tonearoma

Flipping heck Ras, I apologise if I've put it in the wrong section.. for what it's worth, my query seems slightly niche to me, and I did try to find the appropriate thread.. lol 

I think I've explained my situation pretty well, I'm not going to completely bore everyone with all of the detail... it's a genuine problem i stupidly find myself in, and would just appreciate some practical advice, whilst sticking to the law on how to deal with this.. 

Savvy_Sue

However you came by this money, you admit it is not yours. Therefore, the correct, moral, legal thing to do is to pass the 14K on to your sibling. Now, not when you have finished reading up about irrelevancies like PETS, IHT and goodness knows what. 

By all means consult a solicitor if you must, but you should pay for that, not your sibling. 

You can transfer that via a bank transfer and it's unlikely anyone will bat an eyelid. If the limit is lower than that, then do it in stages, but do it as soon as possible. If your sibling's bank starts batting eyelids, you will have given your sibling a note or sent an email saying "this is the £14K which came from the bonds" and add a further clarification of where the bonds came from and how you are getting it to them. 

Your sibling will say "TYVM" and will NOT have to declare the gift in his self-assessment because it is NOT earned income, it is repayment of a debt owed to them by family, and nothing to do with their self-employment. Just a reminder that anyone can give anyone else any amount of money as a gift in any situation, and the taxman doesn't care. 

Because it is not a gift from you, it is a debt owed by you, it is not a PET, it does not fall under the seven year rule, and even if you died the day after making the transfer with an estate worth millions, it would not fall back into your estate because of the note described above. 

Keep_pedalling

Tonearoma said:

Flipping heck Ras, I apologise if I've put it in the wrong section.. for what it's worth, my query seems slightly niche to me, and I did try to find the appropriate thread.. lol 

I think I've explained my situation pretty well, I'm not going to completely bore everyone with all of the detail... it's a genuine problem i stupidly find myself in, and would just appreciate some practical advice, whilst sticking to the law on how to deal with this.. 

Whatever the background to this is, it sounds like the best way forward is to simply treat it as a gift. If your estate is well below the IHT then simply make the gift in one go, if you have a large estate you could consider making the gifts in separate payments in separate financial years. If you are married you could shorten that process by making it a joint gift across 2 years (£12k now the rest on April 6th)   

Tonearoma

Thanks Savvy_Sue and Keep_peddaling, some sound looking advice there 👍 

gettingtheresometime

I'm interpreting the situation as many moons ago £28K was invested in the OP's name by someone. For whatever reason, the sibling wasn't given anything
I'm assuming that that person has now died and the OP now feels able to share the £28K with the sibling and whilst they see it as the sibling's inheritance it is, in reality a gift to the sibling.

74jax

gettingtheresometime said:

I'm interpreting the situation as many moons ago £28K was invested in the OP's name by someone. For whatever reason, the sibling wasn't given anything
I'm assuming that that person has now died and the OP now feels able to share the £28K with the sibling and whilst they see it as the sibling's inheritance it is, in reality a gift to the sibling.

That is how I see it too - no inheritance, no will / executor etc.
If you are gifting away 14k, make sure you are not seen to be depriving yourself of money - are you on benefits at all?  

Tonearoma

I was on JSA recently, but that has come to an end.. not receiving any other benefits 

74jax

Tonearoma said:

I was on JSA recently, but that has come to an end.. not receiving any other benefits 

Ok, just be aware the full amount of 28k can be taken into account when you are asked for savings (even if you only have 14k of it), and it 'could' be seen as you gifted to deprive yourself.  
If you aren't claiming though then it doesn't matter, but was worth asking.