Contributions to children’s JISA/ ISA in context of IHT

Keep_pedalling

I don’t think it really matters unless you are making uneven gifts just spit each 50% each for your records. Al our gifts have come from our joint account. 

silvercar

Keep_pedalling said:

I don’t think it really matters unless you are making uneven gifts just spit each 50% each for your records. Al our gifts have come from our joint account. 

Discussed in the Sunday Times ‘money questions’ today. Apparently hmrc will look at the source of the money in the account making the gift(s), rather than assume a 50/50 split on money from joint accounts. 

RNV

Thanks. Nothing is easy… will have a read and may have to switch to our personal transfers …after 30th, if still valid

silvercar

The article in question is here (scroll down as it’s the second question of the article) https://www.thetimes.com/business-money/money/article/will-50k-sent-in-error-affect-my-parents-care-funding-3p7zcm9cv

I suspect it is paywalled. The pertinent sentence is”….. However, HMRC regards each account holder as beneficially entitled to the proportion of the account which is attributable to their contributions, and withdrawals by each account holder are set as far as possible against their own contributions. As such, the gift to your children would be regarded as being made by you….”

Albermarle

We will hopefully be both around for at least another 20 years, bar any terminal aggresive illness… But we wont work for that long, so any gifts in a relatively near future will not be from “earned” income

You do not say how old your are, but on average you could expect to live to around 84. If you are healthy, educated and with money, you will likely be above average. There is good chance that at least one of you will reach 95.
I would not be too overenthusiastic about giving too much money away and leaving yourself short in old age. Good care homes can be very expensive for example. Your kids may not be keen on giving you money back.
Letting the  desire to avoid paying tax be the main priority, can lead to poor decision making, as we see many times on these forums.

RNV

thanks for an alternative point of view.

Im “only” 52. DH 10 years older. From both families, the age of departure has been around late 70s - 85. This is what we are aiming for. 

Im heavily SalSacing into my pension. So, 9k into JISAs is the only thing being diverted so far. Will plan future steps and how far ahead depending on what 30th brings. 

We are not talking footballers’ money here but the house alone, zoopla says, is 1.3 mln. Mortgage nearly paid.