Gifting money to Granchildren instead of in the will.

eskbanker

Martini said:

My Mother-In-Law has left 15% of her assets in her will to her granchildren.  My deceased Father-In-Law had the same wishes in his will but has passed all his assets (and Inheritance Tax allowance) on to her.

Just to be clear, are you saying that the remaining 85% of his assets went to her or does your use of 'but' imply that his will wasn't adhered to?

Emmia

Keep_pedalling said:

Martini said:

Keep_pedalling said:

There are no negative tax implications even if she does not live another 7 years.

How old are the GC?

Thanks!
All the grandchildren are now young adults.
I couldn't see that giving them the money now would make any difference, and of course the tax may be abolished soon anyway.

It might make little difference tax wise, but it might be better timing for her GC and at least she would get to enjoy seeing her money put to good use.

Or, cynically she might see the GC spaffing the money on holidays and designer clobber. (But this might have happened anyway once they inherited)

silvercar

Emmia said:

Keep_pedalling said:

Martini said:

Keep_pedalling said:

There are no negative tax implications even if she does not live another 7 years.

How old are the GC?

Thanks!
All the grandchildren are now young adults.
I couldn't see that giving them the money now would make any difference, and of course the tax may be abolished soon anyway.

It might make little difference tax wise, but it might be better timing for her GC and at least she would get to enjoy seeing her money put to good use.

Or, cynically she might see the GC spaffing the money on holidays and designer clobber. (But this might have happened anyway once they inherited)

Was going to say this. My prudish grandparent would have had a heart attack if she'd seen her great grandson spend his (3 figure) inheritance on a weekend away with his then girlfriend.

Martini

silvercar said:

Emmia said:

Keep_pedalling said:

Martini said:

Keep_pedalling said:

There are no negative tax implications even if she does not live another 7 years.

How old are the GC?

Thanks!
All the grandchildren are now young adults.
I couldn't see that giving them the money now would make any difference, and of course the tax may be abolished soon anyway.

It might make little difference tax wise, but it might be better timing for her GC and at least she would get to enjoy seeing her money put to good use.

Or, cynically she might see the GC spaffing the money on holidays and designer clobber. (But this might have happened anyway once they inherited)

Was going to say this. My prudish grandparent would have had a heart attack if she'd seen her great grandson spend his (3 figure) inheritance on a weekend away with his then girlfriend.

Luckily that's unlikely to happen as they are all quite sensible.  Some have already bought their own houses and the others are aiming to join them.  None of them are daft with money.

Martini

eskbanker said:

Martini said:

My Mother-In-Law has left 15% of her assets in her will to her granchildren.  My deceased Father-In-Law had the same wishes in his will but has passed all his assets (and Inheritance Tax allowance) on to her.

Just to be clear, are you saying that the remaining 85% of his assets went to her or does your use of 'but' imply that his will wasn't adhered to?

The will passed all his assets on to my mother-in-law as that wish took precedent.  It was merely mentioned dependant on who died first. On the second death the assetts then go to the three children (85%) and seven grandchildren (15%).

GrubbyGirl_2

Deprivation of assets only becomes an issue with Social Services if there is evidence that the person has deliberately given away money to avoid paying care costs.  If she was already poorly and it is envisaged she would need care in the near future then deprivation of assets would be an issue.  However, if gifts are made now then 2+ years down the line she becomes ill and needs care then it would be very hard for them to prove that there had been deprivation.  So basically the longer the  length of time between the gift and her needing social services support less likely it would be considered as deprivation.  

Having said that she is clearly not going to be giving away the majority of her assets deprivation is irrelevant as she will having to be pay for her own care anyway as she will likely have more than £23k of assets left so Social Services won't even be involved