Me and my wife have come into some money

RobM99

Maybe see a financial advisor at your bank.

Keep_pedalling

km1500 said:

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.

No, it would come out of the house sale and will be the executor(s) responsibility to pay it before distributing the estate. The only risk the recipients of a gift of this size would face is is the £90k came after a separate gift in excess of the NRB. 

Daliah

RobM99 said:

Maybe see a financial advisor at your bank.

That seems about the worst course of action to take, as they are not independent and can only sell you what the bank offers. If you want third party help, look for an Independent Financial Advisor.

The_Fat_Controller

Notepad_Phil said:

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.

Correct !

Albermarle

RobM99 said:

Maybe see a financial advisor at your bank.

There are numerous posts on this forum, warning people not to do exactly what you suggest.
The advisor will be tied in that they can only offer products from that bank, and High st bank products in general tend to be not very good/expensive ones.
If financial advice is needed, then an Independent Financial advisor is normally recommended.

In any case if the OP only intends to save the money in a savings account, then no advisor is needed.

If the OP is thinking that the money will not be needed for some years, and can therefore be invested, then an advisor maybe be useful. If the OP wants to only invest part of the money, or just put it in their workplace pension perhaps, then again an advisor would not be necessary ( or even interested).