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Gran giving away inheritence before she dies.

My Nan owned her own house and I was one of three benifactors in her will. Due to ilness she has recently decided to move in with my Dad and sell her house.

Her house sold for £200k (ie below IHT threshold) and she has decided to distribute it to us before she dies.

Now I understand that there are "disposal of assets" implications for paying for and care that she might need in the future and so we may end up having to pay for that.

...but am I ok to accept this money now?

...what about Capital Gains Tax?

...are there any other issues I have over looked?

Thanks

Bevbot

Reply to
bevbot100
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In message , snipped-for-privacy@yahoo.co.uk writes

??? beneficiaries, surely.

Which will be better than letting her go into a smelly council funded place. She deserves better than that and that is what she should spend her money on.

Yes.

Not applicable,

Yes, if she has already given away £85k or more then if she dies within seven years of when she gave the first lot away then you may have some IHT to pay.

Reply to
John Boyle

As an aside - is your Nan claiming Attendance Allowance...?

Reply to
Martin

Where does the £85K figure come from? Are you saying that a person can 'give away' up to 85K before it becomes classed as disposal of assets, or are you talking simply about CGT?

Reply to
paulfoel

What difference does that make?+

Reply to
paulfoel

He is talking simply about IHT.

He is referring to the fact that the Nil Rate IHT band is £285k, and that gifts in excess of this amount will be potentially taxable.

So it may be that not all of the £200k house money will escape assessment for IHT if more than £85k had already been given away before (but after the start of the 7 year period ending with death).

Reply to
Ronald Raygun

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