Crosswords5 mins ago
Helping My Nephew Buy A House?
1 Answers
long story...looked after my nephew after his parents died. Now want to help with dep for a house/flat for him and girlfriend...am under impression you can only 'gift' a certain amount (3,000 per annum) so why do I then read about parents who, in these tricky times,use their savings to help their offspring? I have approx £18,000 (hard earned, believe me!) that I could put towards a dep...but I don't get how this works?! Could it be classed as a loan? Would I then have to prove repayments from him to me?? I know I should see solic. but any thoughts much appreciated. TIA Paddy
Answers
Best Answer
No best answer has yet been selected by paddy11. 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.£3k is only relevant for inheritance tax. You can give away up to £3k per annum and no IHT is chargeable. This is only an issue if you die within 7 years.
You could do a straightforward gift. Or you could have a declaration of trust that you own a percentage of the property (eg if the property is £100k and you stick in £10k percentage is 10%) - this would at least provide a little protection for him against any partner he takes up with later. You could also set it up as a loan with repayments due at £3,000 per annum which you then "forgive". there are lots of avenues to consider but you do need legal advice.
You could do a straightforward gift. Or you could have a declaration of trust that you own a percentage of the property (eg if the property is £100k and you stick in £10k percentage is 10%) - this would at least provide a little protection for him against any partner he takes up with later. You could also set it up as a loan with repayments due at £3,000 per annum which you then "forgive". there are lots of avenues to consider but you do need legal advice.
Related Questions
Sorry, we can't find any related questions. Try using the search bar at the top of the page to search for some keywords, or choose a topic and submit your own question.