Gift of cash question

I am thinking of giving some cash to my daughter who is married.
Is there any way I can do this and yet ringfencing it so that if she and her husband ever split up he will have no claim on that gift?
Thanks
Reply to
Peterw
I presume that you are assuming that she will not spend it before the hypothetical divorce.
I suspect it can be done with a discretionary trust, as used to be done, in wills, for inheritance tax purposes. If so, it would be taxed at a rate which would be disadvantageous if she is not a higher rate payer. She would also not be able to include it in her will; you will have to specify what happens on her death. You might need to employ an independent trustee, to convince the HMRC that you really had relinquished beneficial ownership.
I'm probably completely wrong, though.
Reply to
David Woolley
How about lending it to her (without interest) with an exchange of letters to make it clear that it is a loan and not a gift.
Robert
Reply to
RobertL
wrote:
make it clear that it is a loan and not a gift.
That sounds like an interesting idea. Presumably if they did split up the husband would be jointly liable for her debt.
Chris
Reply to
Chris Blunt

make it clear that it is a loan and not a gift.
If you expect to have inheritance tax charged on your estate, a loan would remain chargeable to your estate indefinitely, whereas a gift could be completely ignored after 7 years. Trying to play it both ways would be considered fraud.
Fortunately, as there is no business relationship, I think I'm right in saying that she is saved from paying tax on the difference between the interest rate and a commercial rate.
Reply to
David Woolley
This is not suggested to evade IHT but to avoid her husband (or estranged husband) having a claim on 50% of the "gift".
Peter
Reply to
Peterw

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