Hello, thank you for your question. My name is XXXXX XXXXX I can answer this for you.
Taking everything into account from what you have said, there is no reason whatsoever that your father cannot make the gift that he contemplates making.
Whilst is still able to conduct his own financial affairs, he can do as he wishes in this respect. The power of attorney, as you know, will only be relevant if he loses his capacity.
There may be inheritance tax consequences in this respect, but I appreciate you have not asked me about that so far. If you wish me to expand upon this, I can certainly do that for you.
Could you please explain the consequences of the Inheritance Tax?
Yes, sure. I make this observation simply because of your father's age. In a nutshell , payments made within seven years of the date of death are called "potentially exempt transfers".
All payments made more than seven years before death will not be relevant for inheritance tax purposes.
If death offurs within 7 years of a payment being made, and the total value of gifts/payments is less than the Inheritance Tax threshold, then the value of the gifts/payments is added to the estate value and any tax due is paid out of the estate.
This is probably only likely to be relevant if his estate exceeds £325,000.
You can obtain more information about this here:
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If I understand your answer correctly are you saying that the Tax Threshold is £325,000
Yes for the 2014-2015 tax year.
That's great. Thanks for your help.
I have no further questions.