We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
What are the implications of giving 6k to an indebted family member?
Options
Comments
-
The main implication is that you will be £6,000 poorer after you give it to them.
If you die within seven years of the gift then there may be inheritance tax implications, but there is no tax to be paid on giving or receiving a gift.
Your question of whether you should make it a gift or a loan depends on whether you want to give them the money, or lend it to them.2 -
@Chris_English Thank you for your plain English.
I don't understand the inheritance tax implications. I'll do my best not to die soon but what if ... ?
0 -
Chris_English said:
Your question of whether you should make it a gift or a loan depends on whether you want to give them the money, or lend it to them.0 -
@Grumpy_chap I know that there is a high chance I will never see it again. I'll cope. It's family, you know. So it is worth for me to help clearing that debt a little bit.0
-
Chris_English said:
Your question of whether you should make it a gift or a loan depends on whether you want to give them the money, or lend it to them.And or courser ifwant to fall out with them when they fail to pay it as will likely occur.OP, a loan would probably put them in a worse position.
0 -
I guess the other thing to consider is do they know why they ended up in debt & have they got measures in place to ensure they won't just get back into debt?2
-
Unlikely to be an issue if it's only £6k but potentially deprivation of assets if you suddenly have care needs. Less likely to be of note if you stay healthy and mobile a couple of decades. (obviously preferable)I’m a Forum Ambassador and I support the Forum Team on Debt Free Wannabe, Old Style Money Saving and Pensions boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing forumteam@moneysavingexpert.com. All views are my own and not the official line of MoneySavingExpert.
Click on this link for a Statement of Accounts that can be posted on the DebtFree Wannabe board: https://lemonfool.co.uk/financecalculators/soa.php
Check your state pension on: Check your State Pension forecast - GOV.UK
"Never retract, never explain, never apologise; get things done and let them howl.” Nellie McClung
⭐️🏅😇0 -
zurpher said:@Chris_English Thank you for your plain English.
I don't understand the inheritance tax implications. I'll do my best not to die soon but what if ... ?
The same is potentially true for loans, you'd probably want to speak to a solicitor to ensure that it isn't treated as a "transfer of value."0
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 351.1K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.6K Spending & Discounts
- 244.1K Work, Benefits & Business
- 599.1K Mortgages, Homes & Bills
- 177K Life & Family
- 257.5K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards