Relative gifting money

Discussion in 'Off Topic' started by abu13, 6 Nov 2019.

  1. abu13

    abu13

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    Ok so just wondering if anyone has any advice on this.

    Mother and father in law both in their 70's and in poor health, live in privately rented accomodation. They have approached my wife asking her if she will open an account in her name that they can then transfer a chunk of their savings into. Just to be clear this isn't a gift to my wife, they are wanting to remove savings in case anything happens to them health wise and the government come after them to pay for their care.

    They are asking my wife and i to set up a joint account but for them to have the cards etc.. so in effect it would be their account but in our name and they would continue to add and remove funds as required, looking at £35k+.

    To confuse matters they also have a son who is disabled and on benefits, he won't open an account or accept any cash into his account as it would affect his benefits.

    We obviously want to help and are getting pressure do put this in place as quickly as possible but i can see this becoming a real mess further down the line.

    We are being told that they could "gift £3k per year to both me and my wife each year and also backdate this by one year. As such by January there could be £18k gifted, the trouble being that we would not want this going into our regular account.

    Anyone any advice on how to go about this.
     
  2. 117 M34

    117 M34

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    Transfer it to me. I'll keep it in my account.
     
  3. Jordie

    Jordie

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    Just do it and don't tell anyone. Me and my sister did it years ago with our parents.

    They will be allowed something like £20k in their bank that the authorities can't touch anyway.

    Good luck.
     
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  4. Mad Eyed Screamer

    Mad Eyed Screamer

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    Isnt it taxable (upon death) within 7 years of receiving it if you did it legitimately?
    After that no issue or is that with property?

    Good luck in doing it :)
     
  5. abu13

    abu13

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    I don't have a problem doing it but they are on about banging £35k + in the account in one go, I am not sure how the banks work but 5 days ago we took out a £9k loan. Which would look a little odd if we then suddenly had all this mone drop into a different account.
     
  6. Jordie

    Jordie

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    Honestly mate £35 k is small change to the banks, it won't even create a ripple.
     
  7. abu13

    abu13

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    This is my understanding as well, but although the account would be in our name we would have no access to it. All the money cards etc.. would be with the mother and father in law.

    If you can gift up to £6k per year ( £3k to each person ) and they both hopefully survive the next 6 years then all the money could be transfered without any tax being payable

    I guess it's something i would need to get advise on.
     
  8. manimanc

    manimanc

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  9. I have POA for my mum and she's in a similar situation. I think the 3k gift is just that 3k no matter how many, it's split each way but do check.....The rest we take out in cash and the wife hides it. We've just got her a rebate back dated for 6 years on her council tax ( she has dementia ) and added that to her saving and we're putting it into a cash ISA. It's in a cash ISA just in case the powers that be come knocking and we have to cash it in, if it was stock and shares related and it dipped we'd still have to find any shortfall.
    I think the limit you can have in the account before they come begging is £23,500. Again, do check as it may have changed slightly.
     
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  10. SWP's back

    SWP's back

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    Hi OP, they can gift as much to you as they like in one go now, however the local authorities can request to see historic bank statements if they go into care and they may deem it that they gave you that money to avoid paying for long term care costs. (Though no idea why...)

    The seven year rule another poster mentioned refers only to Inheritance Tax (which won’t apply anyway in your in-laws case as it sounds like their joint estate is under the IHT threshold of £650k for a married couple with no main residence).

    PM me if you want to go into more detail on your specifics. This is an area that I deal with, no charge of course.
     

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