Ask a Law Question, Get an Answer ASAP!
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:
Is there anything else I can clarify?
A trust is a good option to reduce IHT liability. Here is some information on this below:
Will that be all?
Hello are you still there?
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
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.