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LondonlawyerJ
LondonlawyerJ, Advocate
Category: Law
Satisfied Customers: 803
Experience:  Solicitor with over 15 years experience.
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My mother gave me money before she died, will I now have to

Resolved Question:

My mother gave me money before she died, will I now have to repay this into her estate
Submitted: 3 years ago.
Category: Law
Expert:  LondonlawyerJ replied 3 years ago.

LondonlawyerJ :

Hello I am a lawyer with over 15 years experience. I will try to help you with this. Was this money a gift or a loan?

Customer: Gift
Customer: It was proceeds from sale of her house which I also lived in, when she went into care we had to sell house to pay fees, she gave all the money to me to get somewhere else to live and also pays care fees
LondonlawyerJ :

If it was a gift then I don't think it will be a problem. The only cause for concern I have is your comment that it was "also to pay care fees". Was this explicitly stated by her when she gave you the money or did she give you the money and simply trust you to use your money to help her as necessary. Also when did she make the gift?

LondonlawyerJ :

I am going to bed now so won't answer again unitl tomorrow morning.

Customer: She gave me the money as she felt bad that I had given up my job to care for her and now I was losing my home, all she asked was that I took care off all her financial obligations, I.e care bills days out and ultimately funeral costs.
Customer: I also add that if this money had stayed in her account it would not have been liable for inheritance tax
Customer: We sold the house in November 2012 and she died in April 2013
Customer: When I refer to care fees I mean full cost of nursing home
LondonlawyerJ :

Do you have any siblings who are or are likely to be unhappy with this.?

Customer: Yes, that's why I am asking. None of these siblings visited or helped out I was left to care for her
LondonlawyerJ :

This will hinge on whether the money was a true gift or was given to you to use to look after her in which case it could be argued you were holding it on trust for her and that it is therefore part of her estate. If your concern is to avoid tax then IHT will be payable on this gift as your mother lived for less than 7 years after making the gift. If your intention is ti retain the money and not share it with your siblings then you could be heading for a messy dispute. If this is the case I would strongly suggest that you instruct a solicitor in the orthodox way as this site will not be able to provide the level and detail of advice that you will need.

LondonlawyerJ :

I hope this answers your question but please feel free to ask further questions. I would also be grateful if you would take the time to rate my service. This will not close the question and I will continue to respond.

Customer: There no question of avoiding inheritence tax as including this money the estate was well under the threshold, it was given as a gift to help me get a home and reimburse me for not being able to work through looking after her
Customer: many thanks for your help
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