Donate SIGN UP

20 Grand In Gift

Avatar Image
DDIL | 14:04 Sat 05th Oct 2024 | Business & Finance
8 Answers

My mother has given a family member 20 grand in 2 months. 
She says initially it was a loan but admits it's unlikely to be 'called in'.

Is there anything we need to be aware of tax wise or a declaration needed.

Thank you 

Gravatar

Answers

1 to 8 of 8rss feed

Best Answer

No best answer has yet been selected by DDIL. Once a best answer has been selected, it will be shown here.

For more on marking an answer as the "Best Answer", please visit our FAQ.

I wouldn't think so - unless your mother dies within 7 years and there is liability to Inheritance Tax.

Question Author

Does that come out of the estate or the person who received the gift?

The executor(s) of the estate will be responsible for any tax - up to them how they fund it.

I think it should be clarified in writing as to whether it is a loan or a gift.  If it is a loan it would still form part of your mother's estate when she dies even if she survives more than seven years and would be included in any assessment if there is a liablility for inheritance tax. 

If it  was a gift there should be evidence of this and this should specify the dates the payments were made so that there is a starting point for the seven year period.

Glen B is spot on......

Yes - I was assuming it is a gift. A loan should have a written agreement.

My brother gave his two sons £50,000 each last year. He doesn’t plan to die for many years yet.

the best laid plans of mice and men gang aft a-gley...

1 to 8 of 8rss feed

Do you know the answer?

20 Grand In Gift

Answer Question >>