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Probate - Sanity Check

including wills and probate
Pipsmum
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Re: Probate - Sanity Check

#193377

Postby Pipsmum » January 14th, 2019, 10:19 am

Lootman wrote:Small gifts up to £250: You can give as many gifts of up to £250 per person as you want during the tax year as long as you have not used another exemption on the same person.


Just out of pedantic virgoan nitpicking curiosity. Does this mean £249.99 is the max? It doesn't say on the gov. website 'up to and including'

PinkDalek
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Re: Probate - Sanity Check

#193390

Postby PinkDalek » January 14th, 2019, 10:58 am

Pipsmum wrote:
Lootman wrote:Small gifts up to £250: You can give as many gifts of up to £250 per person as you want during the tax year as long as you have not used another exemption on the same person.


Just out of pedantic virgoan nitpicking curiosity. Does this mean £249.99 is the max? It doesn't say on the gov. website 'up to and including'


Lifetime transfers: small gifts exemption: summary

Under IHTA84/S20, lifetime gifts not exceeding £250 in total value made by one individual to another in any one tax year are exempt. A tax year runs from 6 April to 5 April the following year.

The exemption applies only to

outright lifetime gifts by one individual to another
actual transfers of value IHTA84/S20 (3).…


From HMRC internal manual Inheritance Tax Manual https://www.gov.uk/hmrc-internal-manual ... /ihtm14180


Note also:

If the gifts to any one donee in the same tax year exceed £250, the s.20 exemption is wholly lost in relation to that donee.

Unlike the annual exemption (IHTM14141)

the £250 exemption does not partly exempt a larger gift, and
it cannot be carried forward to the following year.

chas49
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Re: Probate - Sanity Check

#193565

Postby chas49 » January 14th, 2019, 10:53 pm

Moderator Message:
Post removed for breach of forum rules

Jabd2001
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Re: Probate - Sanity Check

#193598

Postby Jabd2001 » January 15th, 2019, 8:27 am

@pipsmum
I am not sure why your priority concern is gifting? As POA, your duty is to manage things according to the best interests of the donor. Where they have lost capacity, you can continue making the gifts they would normally have made (eg birthday presents to grandchildren) but you should not be seeking to gift away their money for the purposes of reducing a tax or care liability. I would particularly counsel against taking such actions secretively - trust is paramount in these situations and once lost cannot easily be regained.

I would focus your energies on gently trying to gather as much information as possible about accounts etc, and trying to keep an eye on things whilst not ‘taking over’. It is a tricky thing, and you will know your parents best. Also encouraging automation of bill payments if you can.

Lootman
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Re: Probate - Sanity Check

#193749

Postby Lootman » January 15th, 2019, 3:02 pm

Jabd2001 wrote:@pipsmum
I am not sure why your priority concern is gifting? As POA, your duty is to manage things according to the best interests of the donor. Where they have lost capacity, you can continue making the gifts they would normally have made (eg birthday presents to grandchildren) but you should not be seeking to gift away their money for the purposes of reducing a tax or care liability. I would particularly counsel against taking such actions secretively - trust is paramount in these situations and once lost cannot easily be regained.

I think it depends on whether the donor is aware and lucid or not. We usually think of a POA being used only when someone is incapable. But in fact a POA can be used at any time. So if a donor wishes to make gifts, or the attorney genuinely believes that the donor would want to make gifts, then I don't necessarily see a problem.

I think the issue in this case was more the suggestion that the donor and the recipient might collude to make gifts in such a way that the donor might continue to benefit from the gift in some situations. I think you'd have to be very cunning to do that in a way that doesn't fall foul of either "reservation of benefit" rules or "deliberate deprivation of assets" rules. But even then, if care is not needed or IHT isn't relevant, then it might not matter anyway.

Pipsmum
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Re: Probate - Sanity Check

#196095

Postby Pipsmum » January 24th, 2019, 11:50 am

It was my mother (in a more lucid moment) saying she wanted to make legacy gifts so she knew where her money was going. She's always saved all her change for the grandchildren. It was myself and my sister thinking sensibly that it ought to be more of a 'returnable' gift in case her care costs more than we think later on. The non-mentioning part was meaning the recipient rather than the donor.

Pipsmum
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Re: Probate - Sanity Check

#196108

Postby Pipsmum » January 24th, 2019, 12:18 pm



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