Pensione Gifting daughter

Grink68

Bigphil1474 said:

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. 

Thanks Phil,  assuming I don’t last the full 7 years how much tax roughly would my daughter have to pay on the sum I gifted her? 

Grink68

artyboy said:

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?

artyboy said:

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?

Oh yes without a doubt, my daughter and granddaughter both work for the NHS in front line roles so I will be in good hands

Bigphil1474

She wouldn't necessarily have to pay any tax on the gift - the amount of the gift would be just included in with your estate if you die within 7 years of gifting, but not if it's more than 7 years. If your estate is then above the limit including the gift, the estate would need to pay tax, if it's not, you won't. 

When I did my dad's probate and inheritance tax figures, turns out I missed off about £50k worth of gifts that had been made 6 years before he died, but I did include the various gifts totalling around £100k he'd made over the 3 years before he died (couldn't find the older statements and people had fuzzy memories). That £50k made zero difference to the tax man as it would only have taken him from an estate worth about £350k to one worth around £400k, and he had an allowance of £1m due to his particular circumstances.

Grink68

Thanks Phil, that really does help, it’s a lot clearer now.