How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Buachaill Your Own Question
Buachaill
Buachaill, Barrister
Category: Law
Satisfied Customers: 10525
Experience:  Barrister 17 years experience
53108719
Type Your Law Question Here...
Buachaill is online now

My Husband and I will be going into joint partnership of owning

Resolved Question:

My Husband and I will be going into joint partnership of owning our next home with our middle daughter and her Husband.
But I have told the other two daughters that as soon as the house is finalised and we have our money in the bank that I will give them each £10,000 each plus another £40,000 each when it is completely sorted.
However I have been told by my eldest daughter that this is not possible because they will be taxed. And would have to pay Inheritance Tax.
Could you give me an idea of what would be the best way of going about this.
We do have yet to write out our Wills so any advice you can give would be gratefully received.
Submitted: 1 year ago.
Category: Law
Customer: replied 1 year ago.
We are aiming to be mortgage free but we do want to do the right thing for our other 2 daughters when we finally pass away.
Expert:  Buachaill replied 1 year ago.
1. Your eldest daughter is wrong in her interpretation of the law. In the UK there is no such thing as Gift Tax. The liability to Inheritance TAx only arises in relation to gifts made within seven years of the date of death and then only at a declining rate. You may safely gift your other two daughters £50,000 each without any Inheritance TAx payable as there is an exemption to Inheritance Tax for all gifts made, known so long as the donee (the person making the gift) lives for seven years after the date of the gift. So here, so long as you live for seven years after the date of the gift, no liability to Inheritance TAx arises for either of your two daughters.
Buachaill and other Law Specialists are ready to help you