Passing on inheritance

Destiny_Angel62

My mother passed away last year. Her estate will be shared equally between myself and my sister.  However, I want to pass my share directly to my adult son instead of taking it myself.  I am no longer with his father but have a partner who has 3 adult children of his own. I don't want my parents' savings being absorbed into my current shared property/savings which will eventually be split between the two families once we are gone. I have already put everything I had from the sale of my own house into the current shared resources, plus all of my pension and its not worth a great deal, we have wasted too much. I've always felt  guilty that I wouidn't be leaving him much, so this is may way of putting that right. What is the best way of passing it to him without him incurring tax? Would it be classed as income and affect his personal tax threshold?  Should I put it in Trust? I hope this makes sense. 
Thank you

Brie

I think the way to do it is to get a variation on the will so that the money goes directly to your son.  That way it would never be considered yours so there won't be any deprivation of asset issues should you need council hlep to pay for care.  But others may know better.

I do know that a cash inheritance is like a gift.  It's not income and therefore not subject to income tax or any other tax.  The estate should be paying any inheritance tax if there is any.

If the amount is quite high you might want to consult a solicitor to ensure the advice you are getting is correct rather than relying on a company of strangers.

Olinda99

google 'deed of variation'

Robin9

You meet the 2 year limit for a DofV.

HillStreetBlues

Brie said:

 That way it would never be considered yours so there won't be any deprivation of asset issues should you need council hlep to pay for care.

That isn't correct, it can be considered deprivation of asset/capital, as you are giving it away.

Destiny_Angel62

Thank you, I have looked up Deed of Variation, looks like it shouldn't be as complicated as I thought. 

Brie

HillStreetBlues said:

Brie said:

 That way it would never be considered yours so there won't be any deprivation of asset issues should you need council hlep to pay for care.

That isn't correct, it can be considered deprivation of asset/capital, as you are giving it away.

I thought that as it then became DA's mom giving to DA's son it wouldn't be included.  Hopefully the need will never arise or be so far into the future there would be no record of this happening.....

lincroft1710

Destiny_Angel62 said:

I want to pass my share directly to my adult son. I've always felt  guilty that I wouidn't be leaving him much, 

Being a parent brings many worries, financial burdens and heartaches as well as joy. However it is not incumbent upon a parent to leave their offspring an inheritance

elsien

Brie said:

HillStreetBlues said:

Brie said:

 That way it would never be considered yours so there won't be any deprivation of asset issues should you need council hlep to pay for care.

That isn't correct, it can be considered deprivation of asset/capital, as you are giving it away.

I thought that as it then became DA's mom giving to DA's son it wouldn't be included.  Hopefully the need will never arise or be so far into the future there would be no record of this happening.....

Except it isn’t DA’s mum giving it to DA’s son.
It is DA’s being left the money and saying no thank you to it. 

If it was a simple as you suggest, there wouldn’t be all the threads on the benefit boards asking how people can keep their universal credit by passing an inheritance elsewhere. 

Brie

good point elsien!!

Keep_pedalling

Brie said:

HillStreetBlues said:

Brie said:

 That way it would never be considered yours so there won't be any deprivation of asset issues should you need council hlep to pay for care.

That isn't correct, it can be considered deprivation of asset/capital, as you are giving it away.

I thought that as it then became DA's mom giving to DA's son it wouldn't be included.  Hopefully the need will never arise or be so far into the future there would be no record of this happening.....

The advantage of a DoV is that it avoids the inheritance forming part of your estate for IHT purposes. It could fall under deliberate deprivation of assets under certain circumstances but the OP has other savings and a share in a property so it is not likely to be an issue in this case.