Me and my brother are both getting married this year. Can each one of us receive the £5000 gift allowance? And can my mother and father gift us £5000 each from their individual accounts
Gifts
- Thread starter chester123+
- Start date
For IHT purposes, yes
Gifts for weddings or civil partnerships
Each tax year, you can give a tax free gift to someone who is getting married or starting a civil partnership. You can give up to:
£5,000 to a child
£2,500 to a grandchild or great-grandchild
£1,000 to any other person
If you’re giving gifts to the same person, you can combine a wedding gift allowance with any other allowance, except for the small gift allowance.
For example, you can give your child a wedding gift of £5,000 as well as £3,000 using your annual exemption in the same tax year.
https://www.gov.uk/inheritance-tax/gifts .
I the donor has POA any gifts have to be in line with previous gifts and affordable
https://www.gov.uk/government/publi...pg2-giving-gifts-for-someone-else-web-version .
For deprivation of assets probably not allowed unless donor is very wealthy.
Gifts for weddings or civil partnerships
Each tax year, you can give a tax free gift to someone who is getting married or starting a civil partnership. You can give up to:
£5,000 to a child
£2,500 to a grandchild or great-grandchild
£1,000 to any other person
If you’re giving gifts to the same person, you can combine a wedding gift allowance with any other allowance, except for the small gift allowance.
For example, you can give your child a wedding gift of £5,000 as well as £3,000 using your annual exemption in the same tax year.
https://www.gov.uk/inheritance-tax/gifts .
I the donor has POA any gifts have to be in line with previous gifts and affordable
https://www.gov.uk/government/publi...pg2-giving-gifts-for-someone-else-web-version .
For deprivation of assets probably not allowed unless donor is very wealthy.
As POA, you have to act in their best interest. How is giving away £10,000 in their best interests?
Just because you can under IHT laws doesn’t mean it won’t be classed as deprivation of assets.
Just because you can under IHT laws doesn’t mean it won’t be classed as deprivation of assets.
You, as POA are not allowed to profit from the donor.
£5000 is a lot of money! Particually as there are two of you.
have they historically even been known to give awaythat sort of money before?
My parents certainly didntgive me a huge sum like that when I got married.
Them giving it is one thing, presumably, if you have POA they are not giving it ( Ie was it their idea?) you are more kinda taking it!
£5000 is a lot of money! Particually as there are two of you.
have they historically even been known to give awaythat sort of money before?
My parents certainly didntgive me a huge sum like that when I got married.
Them giving it is one thing, presumably, if you have POA they are not giving it ( Ie was it their idea?) you are more kinda taking it!
There is no dispute about giving the money away but from your Father‘s point of view he has a diagnosis of dementia so there could be a time in the future he will need residential care. We all hope it doesn’t come but sadly it does.
Care homes are costly and if there comes a time when his savings ( not your Mother’s) runs out and he needs to approach the local authority to cover his care then the giving away of a sizeable amount maybe seen as he has deprived himself of the money to pay for his care. With local authorities struggling they can and will delve back to see if funds have been used.
no one can stop him giving money away, the members are just pointing out there could be a problem further down the line. If the local authority dig in then they will ask for the funds to be returned or failing that will assume the money to be there and won’t contribute until care to the cost of the gifts is reached which means the care costs will fall on someone else. Sadly money and care are a minefield, it pays to be diligent when making decisions.
It woukd be wise as Nitram says to contact the OPG.
congratulations to you and your brother for your coming weddings.
Care homes are costly and if there comes a time when his savings ( not your Mother’s) runs out and he needs to approach the local authority to cover his care then the giving away of a sizeable amount maybe seen as he has deprived himself of the money to pay for his care. With local authorities struggling they can and will delve back to see if funds have been used.
no one can stop him giving money away, the members are just pointing out there could be a problem further down the line. If the local authority dig in then they will ask for the funds to be returned or failing that will assume the money to be there and won’t contribute until care to the cost of the gifts is reached which means the care costs will fall on someone else. Sadly money and care are a minefield, it pays to be diligent when making decisions.
It woukd be wise as Nitram says to contact the OPG.
congratulations to you and your brother for your coming weddings.
There are multiple rules to consider, it's legal to drive below the speed limit but this does not allow you to drive through a red light.
For info how to contact OPG
@chester123+ As long as they have sufficient funds to cover any future care needs then they can do what they like with their money. You don't say how old they are though and this could make a difference. It may even be to their advantage to give away money for inheritance tax purposes.
My dad regularly gifted money to his grandchildren and occasionally to my brother and myself, he could afford it as he had sufficient funds to pay for any care he would have needed. It was always his idea and I allowed him to do this but then again he had sufficient funds and not a lot to spend it on. If he had not had sufficient funds I would not have allowed him to do this.
My dad regularly gifted money to his grandchildren and occasionally to my brother and myself, he could afford it as he had sufficient funds to pay for any care he would have needed. It was always his idea and I allowed him to do this but then again he had sufficient funds and not a lot to spend it on. If he had not had sufficient funds I would not have allowed him to do this.
My mum was always very generous with her money as thanks to my fathers careful financial planning before his death, she had plenty of money. She gave me and my three siblings £20,000 each in 2006, well before her diagnosis of dementia. She also gave my eldest son £10,000 when he got married in 2012, just before he diagnosis. So, once we invoked our POA, we knew that she would have been equally generous to her other grandchildren when they got married and had discussed the possibility of giving them a similar amount. But she had enough money in savings and investments to pay for 15 years care home fees when she moved to a care home aged 87, without selling her house so deprivation of assets would not have been an issue.
However, she died this year before any more weddings so it’s a no longer a consideration, although I will be gifting my other two children a similar amount once her estate is sorted.
My brother did a spreadsheet to work out how long her money would last based on a 10% increase in fees so we were confident that she would remain self funding. You could do the same, it might help make things clearer.
However, she died this year before any more weddings so it’s a no longer a consideration, although I will be gifting my other two children a similar amount once her estate is sorted.
My brother did a spreadsheet to work out how long her money would last based on a 10% increase in fees so we were confident that she would remain self funding. You could do the same, it might help make things clearer.
My opinion is that if inheritance tax is likely to be an issue then unlikely deprivation of assets will come into play.
In my mum's case she has sufficient assets for over a decade in a care home and at 92 I guess unlikely (I've allowed for increasing costs if nursing care is needed as well).
Therefore I gave my daughter £1,000 from my mum on her 18th and 21st, no other grandchildren have reached this age yet. I discussed it with my brother and he agreed it was what mum would have done.
My mum also gave both myself my brother and our partner's £250 for birthday's and Christmas and I have continued with this as it was part of her regular gifting pattern. For the 8 years until her care home move in April she had excess income so this was coming out of income and not capital.
There are monthly standing orders set up to all 4 grandchildren and I have left these run as well.
In my mum's case she has sufficient assets for over a decade in a care home and at 92 I guess unlikely (I've allowed for increasing costs if nursing care is needed as well).
Therefore I gave my daughter £1,000 from my mum on her 18th and 21st, no other grandchildren have reached this age yet. I discussed it with my brother and he agreed it was what mum would have done.
My mum also gave both myself my brother and our partner's £250 for birthday's and Christmas and I have continued with this as it was part of her regular gifting pattern. For the 8 years until her care home move in April she had excess income so this was coming out of income and not capital.
There are monthly standing orders set up to all 4 grandchildren and I have left these run as well.
