Money gifts

NurseSara

Hi, My mother in law wants to give us £5000 each as she has just lost my father in law. There is 6 of us. How do we stand within the law and tax situation with this. To add to the mix, she is terminally ill and wants to give us the money before she dies. 

Savvy_Sue

When your MIL dies, will there be any inheritance tax to pay? 

does your MIL have enough assets to pay for any help she might need, possibly a spell in a care home? 

If that's a No and a Yes, she can go right ahead and just give you the money. 

Any other answers, it's a bit more complicated. 

NurseSara

Thanks for your reply. My mother in law has been given 6 weeks to live. So you can understand how difficult things are. I am executor of both of their wills as they didn't want anyone else I'm the family doing it.

Keep_pedalling

There are no negative tax issues with this. None of you will have any tax to pay on it. As executor you will need to declare the gifts when applying for probate, but it won’t change the amount of any IHT that might be payable.

If it will give her pleasure to make gifts while she is able then she should do so.

One  thing to be aware of, if she writes out cheques, the gifts will fail if they are not cleared before her death.