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LegalNinja
LegalNinja, Solicitor
Category: Law
Satisfied Customers: 366
Experience:  Solicitor
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I wish to gift money to my son and would like advice in how

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I wish to gift money to my son and would like advice in how to word it .
JA: Where are you? It matters because laws vary by location.
Customer: Hackbridge surrey
JA: What steps have you taken so far?
Customer: Ihave informed his solicitor as this is a deposit towards a house purchase.
JA: Anything else you want the Lawyer to know before I connect you?
Customer: can you explain P E T

Hello,

I will be helping you today.

You can simply say to the solicitor that you wish to gift your son the deposit to be used towards the house purchase. The solicitor will then provide you with any further instructions to follow.

A potentially expemt transfer allows an individual to make a gift which becomes exempt from IHT if the individual survives seven years. This is explained further below:

https://www.which.co.uk/money/tax/inheritance-tax/inheritance-tax-planning-and-tax-free-gifts-aw1mb2n7snwx

Is there anything else I can clarify?

Customer: replied 13 days ago.
Apart from p e t is there another way to avoid tax ie in trust

A trust is a good option to reduce IHT liability. Here is some information on this below:

https://www.moneyadviceservice.org.uk/en/articles/using-a-trust-to-cut-your-inheritance-tax

Will that be all?

Hello are you still there?

Customer: replied 13 days ago.
I am gifting £250000 towards a morgage deposit is this the same as p e t

The information in the links provided does cover this point.

Most gifts you make to other people during your lifetime (unless they fall into the list of tax-free gifts) are classified as ‘potentially exempt transfers’ or PETs for short.

The total amount you can give in gifts in an tax year while you're alive (your 'annual exemption') is £3,000.00

Generally PETs are applied to your £325,000 tax-free allowance before the rest of your estate. So, unless you've given gifts worth more than this allowance, the recipients are very unlikely to pay inheritance tax .

I do hope that clarifies. Is there anything else I can help with

?

Customer: replied 13 days ago.
Thanks for now

It's a pleasure.

I would be grateful for a 5 star rating at the top of your screen for my time. It is important to leave a rating as is how Experts are are credited for their time.

All the best.

-LN

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