Gift from elderly parent(s) and potential impact

sheramber

Cobbler_tone said:

DullGreyGuy said:

Cobbler_tone said:

p00hsticks said:

They just need to document who is giving what to whom (probably better if each parent gives £10k unless one has much more limited life expectancy) somewhere where whoever is the executor to their wills can find it easily

I'm assuming they can gift me £3,000 each within the allowance and then need to stay with me for the next 7 years.

No, at £3k, assuming they gift nothing else to anyone else, then they can pop their clogs tomorrow and it's all fine. The 7 year rule only applies if the total gifts in a year exceeds £3k 

Poorly worded, my bad. I meant £3k each out of the £10k each. Sounds as though they can actually gift me £6k each (from last year) so wouldn't be much exposure...that is if IHT every became an issue.

£3000 per parent but that is the total of gifts, not £3000 to each sibling.

fuzzzzy

As sheramber said above, each parent only has a total 3k allowance a year. However if neither parent has used any of their previous year's gift allowance of 3k then that can also be carried over to this year. So potentially 4k of each siblings gift would be covered by the tax free allowance.

Does not sound like there will be any IHT liability anyway,  but still worth keeping records of gifts just in case.

Grumpy_chap

Cobbler_tone said:

My elderly mum/dad are about to gift me £20,000.
I am one of three siblings who will ultimately inherit their estate when the sad but inevitable happens. I have no idea how much this will be, without factoring in potential future care needs. Maybe £500k including their property (as a figure) but never something I have considered in my own plans.

Is there anything I/they should record and they could well be giving the three of us £20,000 each. I'd imagine they'd want the three of us treated equally.    

A married couple with a total Estate in the region of £500k including principal private residence and leaving all to their children are unlikely to be in IHT territory.

How much liquid assets do the parents have?
Gifting £60k now might leave them short of everyday money.
It also might be considered deprivation of assets should care needs arise.  This, to me, seems a more likely concern than IHT.

Cobbler_tone

Grumpy_chap said:

Cobbler_tone said:

My elderly mum/dad are about to gift me £20,000.
I am one of three siblings who will ultimately inherit their estate when the sad but inevitable happens. I have no idea how much this will be, without factoring in potential future care needs. Maybe £500k including their property (as a figure) but never something I have considered in my own plans.

Is there anything I/they should record and they could well be giving the three of us £20,000 each. I'd imagine they'd want the three of us treated equally.    

A married couple with a total Estate in the region of £500k including principal private residence and leaving all to their children are unlikely to be in IHT territory.

How much liquid assets do the parents have?
Gifting £60k now might leave them short of everyday money.
It also might be considered deprivation of assets should care needs arise.  This, to me, seems a more likely concern than IHT.

I have no idea what they have but there is no way I’d accept their gift if it impacted their lifestyle, which is extremely basic. My mum said she worked full time for her last 7 years and never spent any of it. Plus she has never spent any of her state pension and she is 83. I’ll worry when their house isn’t like a sauna 365