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Tax implications of giving money to someone's Discretionary trust?
GreyMetalWizard
Posts: 8 Forumite
in Cutting tax
Hi everyone,
I'm new here, so I hope this is the correct place to post this question. It's rather specific but I'll try to explain and keep it simple.
My sister has severe learning dificulties and has a Discretionary Trust for some of her finances to keep them away from local government etc. She does not have the capacity to manage her finances herself.
I'm about to inherit a sum of money. Could I give her some money and put it into her Discretionary Trust? (Assumuing I don't die in the next 7 years) would there be tax to pay on the gift? It could be in the regeon of £20,000.
Thanks in advance.
I'm new here, so I hope this is the correct place to post this question. It's rather specific but I'll try to explain and keep it simple.
My sister has severe learning dificulties and has a Discretionary Trust for some of her finances to keep them away from local government etc. She does not have the capacity to manage her finances herself.
I'm about to inherit a sum of money. Could I give her some money and put it into her Discretionary Trust? (Assumuing I don't die in the next 7 years) would there be tax to pay on the gift? It could be in the regeon of £20,000.
Thanks in advance.
0
Comments
-
Gifts to a Trust are chargable life time transfers and as such there is a potential for 20% tax to be charged.
If gifts you have made to trusts in the last 7 years exceeds the current nil rate band (currently £300,000) then tax will be payable.
If the total gifts over the last 7 years are under this limit then no tax is payable.0
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