Inheritance or gift - advice required.

Bazzalona13295

Hi, my Uncle sadly passed away 15 months ago.
With no will left his brothers have gone through the probate process and I'm led to believe my Mom (his remaining sister) will receive somewhere in the region of £60,000.00.

My Mom still has a mortgage to pay off amongst other things but wants me to have a substantial sum, I have no idea what this may amount to.

The question(s) I am asking is what tax implications would such a gift have? Then if so are there ways round this, not being awkward but why pay tax if I don't have to.

I'm a carer for my Mom and only work part time (may need to give that up soon as my back isn't great) so don't currently pay tax.

Any further info required just let me know.

Many thanks in advance.

Flugelhorn

your mum can do various things:

1) deed of variation -  but this has to be done within 2 years of the death I think 

2) just give you the money - no problem / no cost  / no tax issues

UNLESS she is likely to fall into inheritance tax territory at some stage - or ends up need long term care 

Keep_pedalling

There is no gift tax in the UK so there are no tax implications for you. 

Keep_pedalling

Is your mother on any means tested benefits? 

Bazzalona13295

Thanks both, I'll answer both at the same time.

I believe she was just going to give me the money, or at least a fair chunk of it. She's not exactly of the digital age so it may involve cheques plus she's housebound which may delay things but none of those issues (inheritance tax/long term care) are likely.

Thanks again.

Bazzalona13295

Keep_pedalling said:

Is your mother on any means tested benefits? 

Not that I know of unless Attendance Allowance is one?

Keep_pedalling

Bazzalona13295 said:

Keep_pedalling said:

Is your mother on any means tested benefits? 

Not that I know of unless Attendance Allowance is one?

No it’s not, I asked because if she was this would be treated as deliberate deprivation of assets.

Bazzalona13295

Keep_pedalling said:

Bazzalona13295 said:

Keep_pedalling said:

Is your mother on any means tested benefits? 

Not that I know of unless Attendance Allowance is one?

No it’s not, I asked because if she was this would be treated as deliberate deprivation of assets.

No as far as I know thats all she gets.

Brie

The issue could be that if she gives you a good chunk but then needs help paying for care the local authority will consider it deprivation of assets.  The only way around this is the variation on the will being made I believe.

Of course she could simply put the whole amount into a joint account that you both have access to and you can draw out "your" share as and when.  LA is likely look at that as joint so being shared 50/50

Linton

Brie said:

The issue could be that if she gives you a good chunk but then needs help paying for care the local authority will consider it deprivation of assets.  The only way around this is the variation on the will being made I believe.

Of course she could simply put the whole amount into a joint account that you both have access to and you can draw out "your" share as and when.  LA is likely look at that as joint so being shared 50/50

It appears that reducng one's inheritance by a DOV can also be regarded as Deprivation of Assets. See https://www.bromleys.co.uk/deeds-of-variation/#:~:text=If a person gives up,they can be used to and many other places.

Spendless

Are you on any means tested benefits or likely to be in the foreseeable future?