Gifting / Inheritance Tax Question

TisMeBill

The situation I have is I am my father’s only child and his will leaves everything to me, he’s sold his house and is in his 90’s living in a care home. His total assets are about £155,000 which is all savings, his pensions cover the cost of his care home, so his total savings are unlikely to change a great deal.

As I am already in my late 60’s, his attitude is that he would rather I had the majority of the money now, so I can enjoy it now rather than after he passes. He is talking about gifting me £140,000, which will be the first money he has gifted me, but I am struggling to understand any tax implications of this. Any advice on the tax implications or the best way of doing this, would be greatly appreciated.

Keep_pedalling

He really should not gift so much. If his care requirements increase in the future this would likely to bee seen as deliberate deprivation of assets.

There are no tax implications, his his estate is well below the level where IHT comes into effect and we have no gift tax in the UK.

Nomunnofun1

There are no tax implications at all on an estate of that size. There would also never be on you as the recipient. 

He sounds like a wise father. 

Bookworm105

sounds like a very cheap care home if the costs are met in full from pension income alone (or he has stupendous pensions). At his age and already in a care home, the deprivation of capital could be very easily triggered when gifting money to children.

does the 155k include the proceeds from the sale of his house? His net worth seems rather low in that case?

Albermarle

sounds like a very cheap care home if the costs are met in full from pension income alone

That is what I was thinking. You quite commonly see care home costs of £80K pa. It can be less, but still would need a big pension even then.