Funds Insider - Opening the door to funds

Welcome to the Citywire Funds Insider Forums, where members share investment ideas and discuss everything to do with their money.

You'll need to log in or set up an account to start new discussions or reply to existing ones. See you inside!

Notification

Icon
Error
Gifting money to children and grand children
+ Reply to discussion
Options
Tyrion Lannister
Posted: 12 January 2025 19:05:41(UTC)
#21

Joined: 03/03/2017(UTC)
Posts: 2,029

Thanks: 1843 times
Was thanked: 2408 time(s) in 1119 post(s)
Busy doing nothing;330897 wrote:
I would say that from an official viewpoint any monies gifted at this late stage of her life would be deemed as a deliberate act of self deprivation, but whether this matters only time will tell depending on what level of further care may or may not be required, as you say, currently all costs are covered.

However, to place a different spin on things, how does a large cash injection impact the children/grandchildren as we do not know the ages of the people involved.

For example are any on benefits which they possibly might lose, or is there any chance that a divorce may be pending sometime in the near future where the other spouse could walk away with half the inheritance gifted, which clearly would not be part of the original intention.

Obviously a dim view of things, but all angles need to be considered.


One of the Grandchildren has a good job and is about to get married.

Another has serious mental health issues and is claiming UC.
Back to top Quote
1 user thanked Tyrion Lannister for this post.
Busy doing nothing on 12/01/2025(UTC)
D Bergman
Posted: 12 January 2025 19:32:03(UTC)
#22

Joined: 22/03/2018(UTC)
Posts: 1,308

Thanks: 1686 times
Was thanked: 3536 time(s) in 1035 post(s)
Tyrion Lannister;330902 wrote:


One of the Grandchildren has a good job and is about to get married.

Another has serious mental health issues and is claiming UC.


I assume you know that if a person claiming UC has capital of over £6,000 it will reduce the amount of UC received by the claimant, and if capital is over £16,000 then they cannot receive UC.

See:
https://www.gov.uk/guida...at-we-take-into-account

DLA (Disability Living Allowance) or PIP (Personal Independence Payment) are not affected by the claimant's income or capital.

One important side point: a claimant should claim UC, even if they have too much capital to receive it.
If they claim the UC and receive zero money, they will still be deemed as paying NI contributions and this will count towards State Pension.
Back to top Quote
 |  Edit by user
3 users thanked D Bergman for this post.
Tyrion Lannister on 12/01/2025(UTC), Jay P on 16/01/2025(UTC), Helen L on 17/01/2025(UTC)
Tyrion Lannister
Posted: 16 January 2025 18:30:56(UTC)
#23

Joined: 03/03/2017(UTC)
Posts: 2,029

Thanks: 1843 times
Was thanked: 2408 time(s) in 1119 post(s)
Thanks everyone for your help on this.

I've had a chat with my Mum and she's insistent that she wants her kids and grand kids to benefit from selling her house, so I've persuaded her to do this gradually. She won't be paying IHT under any circumstances and she already pays for her own care, she insists on this, it's a pride thing common with a lot of her generation who lived through WW II and continued rationing and hardship into the 1950's.

So she's going to be more generous with Birthday and Christmas presents and give her grand kids a significant lump sum that she can easily afford, they are all at the stage in life where they have a lot of expense, 3 of them are either getting married, or soon to be, and needing money for new houses etc. All except for one who is on UC so her parents will keep the money on her behalf until she needs it for buying a house or whatever.
Back to top Quote
2 users thanked Tyrion Lannister for this post.
D Bergman on 16/01/2025(UTC), Helen L on 17/01/2025(UTC)
3 PagesPrevious page123
+ Reply to discussion

Markets

Other markets