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  • FIRST POST
    • simon2018
    • By simon2018 15th Apr 18, 12:30 PM
    • 25Posts
    • 22Thanks
    simon2018
    Gifting cash to children - what process?
    • #1
    • 15th Apr 18, 12:30 PM
    Gifting cash to children - what process? 15th Apr 18 at 12:30 PM
    Hello
    My uncle was talking about gifting money to his children and nephews.

    He sold his business a few years ago and go money sitting in the bank and not want to gamble in shares/etc.

    He wants to give 100k approx each to nephews and 250k each to his children.

    He does not like paying money out unless he has to and will after he has done his research so he is not overcharged for advice/help

    When he gifts the large amounts - does he need a solicitor or can he just draw up a letter stating amount gifted and two signatures from people that are not getting the gift?

    If the above is the case, are there any standard letters/etc. He is fully aware and old school, once he has gifted the money, even without signatures, the money is nothing to do with him and those that get the gift could gamble it away, lose it in a divorce or do the right thing, eg buy a property, pay off a mortgage or some of it, pay of their debts, or save up for a deposit/etc/etc.

    Many thanks
Page 1
    • Keep pedalling
    • By Keep pedalling 15th Apr 18, 12:46 PM
    • 4,834 Posts
    • 5,378 Thanks
    Keep pedalling
    • #2
    • 15th Apr 18, 12:46 PM
    • #2
    • 15th Apr 18, 12:46 PM
    The money will still have something to do with him, as it will stay in his estate for 7 years for IHT purposes, although the amount given over his nil rate band will be subject to taper relief over those 7 years.

    With the amount involved he should take paid for advice from an IFA about the most tax efficient way of gifting, and to make sure he still has plenty of assets left over to see that he is comfortable in old age, and have a sufficiently large reserve left to pay for high quality care should he need it, and that his estate has enough assets to meet any IHT due without the need for it to be clawed back for the recipients of those gifts should he die within 7 years.
    • simon2018
    • By simon2018 15th Apr 18, 12:58 PM
    • 25 Posts
    • 22 Thanks
    simon2018
    • #3
    • 15th Apr 18, 12:58 PM
    • #3
    • 15th Apr 18, 12:58 PM
    Thank you. but does he need a solicitor?
    Re IFA - do any banks or building societies provide advice for free initially?
    • Keep pedalling
    • By Keep pedalling 15th Apr 18, 1:17 PM
    • 4,834 Posts
    • 5,378 Thanks
    Keep pedalling
    • #4
    • 15th Apr 18, 1:17 PM
    • #4
    • 15th Apr 18, 1:17 PM
    No he does not need a solisitor, and banks / building societies are not independent so should be avoided.

    I am sure when he was in busness he paid accounts and other professionals, so why the reluctance now when so much is at stake?
    • xylophone
    • By xylophone 15th Apr 18, 2:21 PM
    • 25,144 Posts
    • 14,812 Thanks
    xylophone
    • #5
    • 15th Apr 18, 2:21 PM
    • #5
    • 15th Apr 18, 2:21 PM
    Your uncle is not compelled to take advice about giving away his money.

    He may, however, wish to be fully conversant with the Inheritance Tax implications and also with with the question of "deprivation of assets" in the event that he required means tested care.

    https://www.which.co.uk/money/tax/inheritance-tax/guides/inheritance-tax-planning-and-tax-free-gifts

    https://www.which.co.uk/elderly-care/financing-care/gifting-assets-and-property/343063-what-are-the-rules-for-gifting-assets

    https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band
    • Tom99
    • By Tom99 15th Apr 18, 2:52 PM
    • 1,933 Posts
    • 1,275 Thanks
    Tom99
    • #6
    • 15th Apr 18, 2:52 PM
    • #6
    • 15th Apr 18, 2:52 PM
    Given the amounts involved the beneficiaries of the gifts may be liable to IHT if he dies within 7 years so maybe they should be advised about that just in case.
    For the same reason it would be a good idea to make all gifts at the same time or at least in the same tax year otherwise the last to receive their gift might end up paying all the tax.
    • lindabea
    • By lindabea 15th Apr 18, 3:44 PM
    • 970 Posts
    • 136 Thanks
    lindabea
    • #7
    • 15th Apr 18, 3:44 PM
    • #7
    • 15th Apr 18, 3:44 PM
    He wants to give 100k approx each to nephews and 250k each to his children.
    Originally posted by simon2018
    Only Nephews?? Aren't your sisters getting any money from your uncle then? Doesn't seem fair!!

    With all this money coming your your way from your dad as well as your uncle, you can give your boss the old boot
    Before doing something... do nothing
    • le loup
    • By le loup 15th Apr 18, 4:33 PM
    • 3,783 Posts
    • 3,735 Thanks
    le loup
    • #8
    • 15th Apr 18, 4:33 PM
    • #8
    • 15th Apr 18, 4:33 PM
    Fantasist.
    .........................
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