Gifting to children

NBS53

I want to gift £10k to my child so she can pay off debts (credit cards, store cards, etc.) Can I just transfer money from an isa into her account without tax liability to either she or I?

[Deleted User]

Yes. Just try to avoid dying in the next 7 years, or there will potentially be inheritance tax to pay on it by your estate.

Brie

And ask/tell her to get rid of the credit cards so you don't need to repeat this in a couple of months/years. (been there/done that)

Keep_pedalling

Deleted_User said:

Yes. Just try to avoid dying in the next 7 years, or there will potentially be inheritance tax to pay on it by your estate.

But if she did not make the gift IHT could (if the OPs estate is big enough) be due on it indefinitely. There is no IHT downside to gifting unless you go mad and give so much away there is not enough in the estate to pay the bill.

ZaSa1418

If you are worried about the potential IHT could you not just call the companies and pay them all off instead? 

MattMattMattUK

ZaSa1418 said:

If you are worried about the potential IHT could you not just call the companies and pay them all off instead? 

That amounts to the same thing as gifting the money into the child's account then the child paying it off.

macman

Unless you trust her 100% to clear the debts, then pay them off direct yourself.