Dad gifted me £10,00 but it's cash!

CMT07

My mum passed away before Christmas and since then my dad has found some cash in his house!  He's therefore gifted myself and my husband around £10,000 all in cash.  If I'm understanding correctly he can only gift £3,000 per year, however if this is due to Inheritance Tax etc. I 100% know that he will not hit the £325,000 threshold should he pass away during the next 7 years.  Is it still not possible to bank the £10,000 as it's cash?  We ideally want to put it away as safe as possible in maybe an ISA where we can't easily transfer it between accounts etc. but am concerned that it will be in issue when we try to bank it?  Any advice would be greatly appreciated.  Many thanks

eskbanker

The £3K annual exemption does indeed apply specifically to IHT, so if that isn't going to come into play then there's no issue on that front, assuming there are no further surprise stashes of cash, of course!  Does the fact that he found it signify that it was hers rather than his (in which case it should be declared as such when dealing with her estate, and handled according to her will, if any)?

Expect to be challenged by your bank when seeking to pay in such a large amount of cash, so having some sort of supporting documentation may help....

born_again

Echo the above. You will be questioned by the bank if you deposit it. So having proof will help (Just taking your dad, to say he gave it to you won't be proof as such)

CMT07

eskbanker said:

The £3K annual exemption does indeed apply specifically to IHT, so if that isn't going to come into play then there's no issue on that front, assuming there are no further surprise stashes of cash, of course!  Does the fact that he found it signify that it was hers rather than his (in which case it should be declared as such when dealing with her estate, and handled according to her will, if any)?

Expect to be challenged by your bank when seeking to pay in such a large amount of cash, so having some sort of supporting documentation may help....

Thanks so they shared everything etc. all accounts were joint, bills etc, however she had dementia for sometime before passing away and we assume that's why this was there.  It's a proper stress them having it in the house and not in the bank!!  Since her passing he has taken over everything as they were 50%/50% anyway.  Is there no way to sort this?  What kind of supporting document would help?

Thanks so much

CMT07

born_again said:

Echo the above. You will be questioned by the bank if you deposit it. So having proof will help (Just taking your dad, to say he gave it to you won't be proof as such)

Would I not be able to bank it as a gift for last year and this year (£6,000).  Would my husband be able to do the same.  It's such a headache!

MayDogsandCoffee

When my Grandma died there was cash stashed all over the house,  I think it was easier in those days to deposit.  Can you drip feed it in over a few accounts?  Do you have any house maint or large purchases coming up?

la531983

MayDogsandCoffee said:

When my Grandma died there was cash stashed all over the house,  I think it was easier in those days to deposit.  Can you drip feed it in over a few accounts?  Do you have any house maint or large purchases coming up?

Or use cash to pay for things over the next few months. Petrol, shopping etc. And put the funds you arent spending in your bank to one side as you go along.

p00hsticks

CMT07 said:

born_again said:

Echo the above. You will be questioned by the bank if you deposit it. So having proof will help (Just taking your dad, to say he gave it to you won't be proof as such)

Would I not be able to bank it as a gift for last year and this year (£6,000).  Would my husband be able to do the same.  It's such a headache!

It's got nothing to do with the IHT £3k gift allowance - your father can give you as much as he wants, it's not limited to 3k and as he's under the IHT limit anyway there would be no consequences if he died within seven years anyhow. 

The issue is that these days banks are going to very suspicious of people turning up with large wads of cash and no proof of where it came from or how it was acquired. there are very strict anti-money laundering rules. 

CMT07

p00hsticks said:

CMT07 said:

born_again said:

Echo the above. You will be questioned by the bank if you deposit it. So having proof will help (Just taking your dad, to say he gave it to you won't be proof as such)

Would I not be able to bank it as a gift for last year and this year (£6,000).  Would my husband be able to do the same.  It's such a headache!

It's got nothing to do with the IHT £3k gift allowance - your father can give you as much as he wants, it's not limited to 3k and as he's under the IHT limit anyway there would be no consequences if he died within seven years anyhow. 

The issue is that these days banks are going to very suspicious of people turning up with large wads of cash and no proof of where it came from or how it was acquired. there are very strict anti-money laundering rules. 

Thanks so what would be a way which they would see it is legitimate!  The spending it is one option but surely that would look suspicious too if we suddenly were spending so much less per month!

CMT07

MayDogsandCoffee said:

When my Grandma died there was cash stashed all over the house,  I think it was easier in those days to deposit.  Can you drip feed it in over a few accounts?  Do you have any house maint or large purchases coming up?

No large purchases as such and I simply wanted to save it as a safety net as we don't generally save lol!  Something to consider tho for sure, we've all become so used to paying for everything with card!

Sea_Shell

Are they all valid current notes, or do they need changing to enable them to be spent?