Gift from child to parent

by **BewilderedMum** on Wed Mar 17, 2010 7:27 pm

Hi,

I've no idea if this the right forum for this question - please move it to somewhere more appropriate if necessary.

My adult children are about to inherit a sizeable sum from their father's estate. He and I were never married nor did we cohabit. In fact, my children had never even met him - for reasons I don't need to go into. He was not involved with them, or me, financially or otherwise. I inherit nothing.

My children want to give me approx £20,000 each from their inheritance. Would this incur tax? If so, what sort? Are there ways to minimise the liability?

Thanks.

by **AvocadoK** on Wed Mar 17, 2010 8:04 pm

Hi
There is no tax payable by you or your children in this situation. No tax is chargeable on gifts from one living person to another. The only possibility of tax becoming payable is where the giver has made gifts exceeding £325,000 and dies within 7 years of those gifts.
Regards
AK

by **BewilderedMum** on Wed Mar 17, 2010 8:19 pm

Hi,

Thanks so much for the prompt reply! I was getting very confused by the topics on inheritance tax, exemptions etc. You've put my mind at rest.

Best regards.

by **maths** on Wed Mar 17, 2010 9:52 pm

Whilst I do not disagree with the comments of AvocadoK it may be that the children (how old?) could execute a Deed of Variation re the monies they wish to redirect to you.

Whether this is appropriate depends upon their own wealth, the size of their inheritance and their ages.

by **BewilderedMum** on Thu Mar 18, 2010 12:25 am

Thanks for the suggestion. I've had a read around this and I don't think anything like that would be necessary. My children are both in their twenties and, short of a lottery win!, are unlikely to have assets in excess of the inheritance tax limit within the next seven years. Have I grasped the esssentials of your reasoning behind this?