Me and my wife have come into some money

Notepad_Phil

ColdIron said:

The_Fat_Controller said:

You may have Inheritance Tax issues to consider if she dies within 7 years.

The OP won't have any IHT issues. The OP's MIL's estate may have IHT issues

Provided that the MIL's estate has enough left over to deal with those issues - otherwise my understanding is that the people who have benefited can be chased.

Keep_pedalling

The_Fat_Controller said:

You may have Inheritance Tax issues to consider if she dies within 7 years.

Why is this brought up ever time a ‘gifting’ thread is posted? As long as the gifter has not gifted more than the NRB there is never an issue for the recipient, and as for an issue for the estate of the person making the gift that is also a non issue, if they die within 7 years then any IHT due will be the same as it would have been if they had never made the gift.

Keep_pedalling

Bigwheels1111 said:

Best option is 2 accounts, to half the tax burdon. Plus protect the savings limit of 85K.

Then its simple, how long before you need the money, plus now is not the best time to fix, well thats what Im thinking.

The Bank of England sit 3 more time this year, with inflation so high they should raise interest rate on each sitting.

Im holding off until Jan or Feb next year to fix.

Using Al Ryan @ 1.9% easy access, Shawbrook @ 1.84% paid monthly, Zopa @ 1.95% 31 days notice.

I would think a 1 year fixed @ 4% will be here by December.

But its all pie in the sky until then.

No one knows for sure.

The tax would be the same on a joint account as it would be on two separate accounts.

Keep_pedalling

Do you have any short or medium plans for this money? If not then you will be better off investing preferably within pensions or ISAs. Inflation will eat away at this is kept in cash for years on end.

km1500

Keep_pedalling said:

The_Fat_Controller said:

You may have Inheritance Tax issues to consider if she dies within 7 years.

Why is this brought up ever time a ‘gifting’ thread is posted? As long as the gifter has not gifted more than the NRB there is never an issue for the recipient, and as for an issue for the estate of the person making the gift that is also a non issue, if they die within 7 years then any IHT due will be the same as it would have been if they had never made the gift.

I think.the warning is that if IHT is due then the recipient of the money may have spent it not realising they may be called upon to pay 40% of it to HMRC later down the line - or even 100% of it to the council if means-tested benefits are claimed.

Keep_pedalling

km1500 said:

Keep_pedalling said:

The_Fat_Controller said:

You may have Inheritance Tax issues to consider if she dies within 7 years.

Why is this brought up ever time a ‘gifting’ thread is posted? As long as the gifter has not gifted more than the NRB there is never an issue for the recipient, and as for an issue for the estate of the person making the gift that is also a non issue, if they die within 7 years then any IHT due will be the same as it would have been if they had never made the gift.

I think.the warning is that if IHT is due then the recipient of the money may have spent it not realising they may be called upon to pay 40% of it to HMRC later down the line - or even 100% of it to the council if means-tested benefits are claimed.

But they won’t, the estate pays any IHT not the recipients of gifts. The only time HMRC would be looking to pursue recipients is if more than the NRB (£325k) had been gifted and there was insufficient assets left in the estate to pay the tax.

Daliah

Deprivation of Assets is potentially a larger issue than IHT

HobgoblinBT

Bigmark69, some good points made on here already about savings accounts and tax considerations.  

Of course, you may already have plans to spend the money, but if you are looking at your longer term financial future, check out some of the general financial planning articles available on Hargreaves Lansdown website and those of other providers.  

 

Also, consider if this is an opportunity to cut your fuel bills with solar panels. 

 

 Another thing to check for both you and Mrs Bigmark69 is your National Insurance records via the U.K. gov Gateway to see if either of you have any gaps preventing you getting a full pension. 

km1500

Keep_pedalling said:

km1500 said:

Keep_pedalling said:

The_Fat_Controller said:

You may have Inheritance Tax issues to consider if she dies within 7 years.

Why is this brought up ever time a ‘gifting’ thread is posted? As long as the gifter has not gifted more than the NRB there is never an issue for the recipient, and as for an issue for the estate of the person making the gift that is also a non issue, if they die within 7 years then any IHT due will be the same as it would have been if they had never made the gift.

I think.the warning is that if IHT is due then the recipient of the money may have spent it not realising they may be called upon to pay 40% of it to HMRC later down the line - or even 100% of it to the council if means-tested benefits are claimed.

But they won’t, the estate pays any IHT not the recipients of gifts. The only time HMRC would be looking to pursue recipients is if more than the NRB (£325k) had been gifted and there was insufficient assets left in the estate to pay the tax.

exactly right. hence my use of the word 'may'. Depends on the size of the estate. 

eg a 600k house (single person) left to eg their son. They also give 90k away. 500k is IHT free, so IHT on 100k is owed ie 40k. If no further assets HMRC will go after the 90k recipient for that 40k which might come as a shock.

km1500

Daliah said:

Deprivation of Assets is potentially a larger issue than IHT

only if you claim MTB otherwise it is irrelevant.