Gifting an inheritance

[LordGrover]

Long story short; my father, 86, is to receive a small inheritance c. £50,000.

He has said he wants to split it three ways; to me, my brother and his kids - third each to my brother and me and final third split between my niece and nephew.

Will I/we have to declare and pay tax? I'm not keen on handing over 40% to HMRC if avoidable.

Would we be better off suggesting he keeps it and leaves it to us in his will?
He's not wealthy and I doubt his 'estate' will exceed £325,000.

[megaphone]

There is no income tax to pay on gifts. If he dies within 7 years then the gift will still be seen as part of his estate for inheritance tax purposes, however you say he is well below the threshold so it will not really matter. Of course this could change under any new rules. Hopefully he will be living a lot longer!

Another option is a 'dead of variation' . This can be set up to 'alter' the will so the assets go directly to you. Not really necessary in this case.

[ozzuk]

If memory serves you can 'gift' 3k pa, but anymore than that if your father needs care then it could be seen as deprivation of assets, and I believe there is no limit on how far they can go back to recover the money. Given care homes are often 40K+pa the money soon goes.

[softtop]

megaphone said:

There is no income tax to pay on gifts. If he dies within 7 years then the gift will still be seen as part of his estate for inheritance tax purposes, however you say he is well below the threshold so it will not really matter. Of course this could change under any new rules. Hopefully he will be living a lot longer!

Another option is a 'dead of variation' . This can be set up to 'alter' the will so the assets go directly to you. Not really necessary in this case.

Spellcheck matters

[Mark300zx]

megaphone said:

Another option is a 'dead of variation' . This can be set up to 'alter' the will so the assets go directly to you. Not really necessary in this case.

Bit of a freudian slip , I think that maybe called a deed of variation?

[tanti007]

it will be fine.

You are innocent until proven guilty .

[LordGrover]

Coolio.
Thanks all.


//shuffles off to classifieds...//

[megaphone]

Mark300zx said:

megaphone said:

Another option is a 'dead of variation' . This can be set up to 'alter' the will so the assets go directly to you. Not really necessary in this case.

Bit of a freudian slip , I think that maybe called a deed of variation?

Too late to change it now, the deed is done!

[Mark300zx]

Jasey_ said:

megaphone said:

Mark300zx said:

megaphone said:

Another option is a 'dead of variation' . This can be set up to 'alter' the will so the assets go directly to you. Not really necessary in this case.

Bit of a freudian slip , I think that maybe called a deed of variation?

Too late to change it now, the deed is done!

Made me smile

Indeed