Pensione Gifting daughter

Grink68

I wonder if anyone can help, I am a disabled 80 year and in poor health. My daughter wants me to live with her so that she can care for me and is buying a new home for all of us. I am helping by gifting her a large deposit. She will be the mortgage holder. My question is will she be subject to inheritance tax despite me living with her?
Thanks in advance for any advice or help 

Ayr_Rage

The gift will be part of your estate for inheritance tax purposes and any tax due is paid by your estate when you pass, before it is distributed to the beneficiaries.

Take proper legal advice and ensure you make a will.

Grink68

Ayr_Rage said:

The gift will be part of your estate for inheritance tax purposes and any tax due is paid by your estate when you pass, before it is distributed to the beneficiaries.

Many thanks for your quick response, my estate will be very small could you possibly give me a ball park figure on how much that might be? 

Brie

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Grink68

Brie said:

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Thanks Brie, my daughter is receiving AA for me So I gather that if my estate is over £325 when I pass away which it certainly won’t be then my daughter who is my sole heir will not be liable for any tax ? Do I have that right?

Mikeeee_2

Grink68 said:

I wonder if anyone can help, I am a disabled 80 year and in poor health. My daughter wants me to live with her so that she can care for me and is buying a new home for all of us. I am helping by gifting her a large deposit. She will be the mortgage holder. My question is will she be subject to inheritance tax despite me living with her?
Thanks in advance for any advice or help 

Will the gift be made from savings or surplus income?

RAS

Grink68 said:

Brie said:

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Thanks Brie, my daughter is receiving AA for me So I gather that if my estate is over £325 when I pass away which it certainly won’t be then my daughter who is my sole heir will not be liable for any tax ? Do I have that right?

No, if your estate is worth LESS that £325k, there will be no IHT to pay.

There are other allowances which increase that limit. So are you single, widowed or divorced? Did you inherit the house (or a portion) from your daugther's other parent?

But as everyone says, the LA may look at deprivation of assets depending on how long you remain living with your daughter. If they find against, they can refuse to fund any care for you and let your daughter do it.

Grink68

RAS said:

Grink68 said:

Brie said:

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Thanks Brie, my daughter is receiving AA for me So I gather that if my estate is over £325 when I pass away which it certainly won’t be then my daughter who is my sole heir will not be liable for any tax ? Do I have that right?

No, if your estate is worth LESS that £325k, there will be no IHT to pay.

There are other allowances which increase that limit. So are you single, widowed or divorced? Did you inherit the house (or a portion) from your daugther's other parent?

But as everyone says, the LA may look at deprivation of assets depending on how long you remain living with your daughter. If they find against, they can refuse to fund any care for you and let your daughter do it.

RAS said:

Grink68 said:

Brie said:

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Thanks Brie, my daughter is receiving AA for me So I gather that if my estate is over £325 when I pass away which it certainly won’t be then my daughter who is my sole heir will not be liable for any tax ? Do I have that right?

No, if your estate is worth LESS that £325k, there will be no IHT to pay.

There are other allowances which increase that limit. So are you single, widowed or divorced? Did you inherit the house (or a portion) from your daugther's other parent?

But as everyone says, the LA may look at deprivation of assets depending on how long you remain living with your daughter. If they find against, they can refuse to fund any care for you and let your daughter do it.

RAS said:

Grink68 said:

Brie said:

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Thanks Brie, my daughter is receiving AA for me So I gather that if my estate is over £325 when I pass away which it certainly won’t be then my daughter who is my sole heir will not be liable for any tax ? Do I have that right?

No, if your estate is worth LESS that £325k, there will be no IHT to pay.

There are other allowances which increase that limit. So are you single, widowed or divorced? Did you inherit the house (or a portion) from your daugther's other parent?

But as everyone says, the LA may look at deprivation of assets depending on how long you remain living with your daughter. If they find against, they can refuse to fund any care for you and let your daughter do it.

Ahh, ok, the whole plan is to live with my daughter because she is adamant that I will not be going into a Home, she has sold her own small house and with my ‘gift’ has got a mortgage and waiting for the exchange of contracts.
Once again many thank

Grink68

Mikeeee_2 said:

Grink68 said:

I wonder if anyone can help, I am a disabled 80 year and in poor health. My daughter wants me to live with her so that she can care for me and is buying a new home for all of us. I am helping by gifting her a large deposit. She will be the mortgage holder. My question is will she be subject to inheritance tax despite me living with her?
Thanks in advance for any advice or help 

Will the gift be made from savings or surplus income?

Mikeeee_2 said:

Grink68 said:

I wonder if anyone can help, I am a disabled 80 year and in poor health. My daughter wants me to live with her so that she can care for me and is buying a new home for all of us. I am helping by gifting her a large deposit. She will be the mortgage holder. My question is will she be subject to inheritance tax despite me living with her?
Thanks in advance for any advice or help 

Will the gift be made from savings or surplus income?

From savings that I have accumulated over the years, I have a number of pensions and a disability allowance 

artyboy

Grink68 said:

RAS said:

Grink68 said:

Brie said:

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Thanks Brie, my daughter is receiving AA for me So I gather that if my estate is over £325 when I pass away which it certainly won’t be then my daughter who is my sole heir will not be liable for any tax ? Do I have that right?

No, if your estate is worth LESS that £325k, there will be no IHT to pay.

There are other allowances which increase that limit. So are you single, widowed or divorced? Did you inherit the house (or a portion) from your daugther's other parent?

But as everyone says, the LA may look at deprivation of assets depending on how long you remain living with your daughter. If they find against, they can refuse to fund any care for you and let your daughter do it.

RAS said:

Grink68 said:

Brie said:

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Thanks Brie, my daughter is receiving AA for me So I gather that if my estate is over £325 when I pass away which it certainly won’t be then my daughter who is my sole heir will not be liable for any tax ? Do I have that right?

No, if your estate is worth LESS that £325k, there will be no IHT to pay.

There are other allowances which increase that limit. So are you single, widowed or divorced? Did you inherit the house (or a portion) from your daugther's other parent?

But as everyone says, the LA may look at deprivation of assets depending on how long you remain living with your daughter. If they find against, they can refuse to fund any care for you and let your daughter do it.

RAS said:

Grink68 said:

Brie said:

She wouldn't have IHT, your estate might.  But only if you don't live for more than 7 years after making the gift and only if you are above the limits.  That starts at £325k before any is due and may in fact be much higher.

What might be a bit trickier is that should you need local authority assistance to care for you they may look into the fact that you "gave away" a lot of money.  We had this with my MiL and there was discussions about deprivation of assets as she had given us money from selling her flat so that we could buy a home together so she could live with us.  In the end it wasn't a big issue as she had enough to pay for her care herself.

And do be sure that you have applied for Attendance Allowance, given you are disabled, elderly and not too well.  It's not a huge amount of money but for us meant there was a bit that could be used to have additional care in the home that made it much easier for us and MiL tick along together.  

Thanks Brie, my daughter is receiving AA for me So I gather that if my estate is over £325 when I pass away which it certainly won’t be then my daughter who is my sole heir will not be liable for any tax ? Do I have that right?

No, if your estate is worth LESS that £325k, there will be no IHT to pay.

There are other allowances which increase that limit. So are you single, widowed or divorced? Did you inherit the house (or a portion) from your daugther's other parent?

But as everyone says, the LA may look at deprivation of assets depending on how long you remain living with your daughter. If they find against, they can refuse to fund any care for you and let your daughter do it.

Ahh, ok, the whole plan is to live with my daughter because she is adamant that I will not be going into a Home, she has sold her own small house and with my ‘gift’ has got a mortgage and waiting for the exchange of contracts.
Once again many thank

And is that also what you want?

Bigphil1474

OP, as you won't have property to leave your daughter, your inheritance tax allowance will be £325k. However, if you had a spouse who died previously, then you may have essentially inherited their tax free allowance for inheritance. So could possibly have an allowance of £650k or more. If you are happy that your estate is worth less than £325k, then don't worry about that. It would include the gifted amount for the next 7 years.