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Money gifts from parents

Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
in Home, Law & Money
My Dad just gave me a cheque for 4 figures and he'll be giving the same amount to my sister - don't particularly want or need it.

More cos if what it represents, the fact he's getting older and will die one day and he wants to start giving away some of his assets.

I'm not even sure what will happen if I cash it - will it set alarm bells ringing at the local tax office?

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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    DiamondGeezer wrote: »
    My Dad just gave me a cheque for 4 figures and he'll be giving the same amount to my sister - don't particularly want or need it.

    Give it to me then, I both want and need it.

    Just put it in the bank and forget it.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    budda wrote: »
    Give it to me then, I both want and need it.

    Just put it in the bank and forget it.
    God I so want and need it! I could set me and my mum a nice little business up and we could work for ourselves and be very content!

    Put it in a savings account for when you have children, or use it to expand your business. Give some to charity too?
    No help on the legal front I'm afraid - just don't tell the ladies you're pulling!
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Get yourself an ISA, think it's £3,000 maximum and about 5.3% interest. Not a great deal i know but in a years time you'll have £150 or so for doing nothing :)
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    DiamondGeezer wrote: »
    will it set alarm bells ringing at the local tax office?

    Only if you tell them :D
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    VinylVicky wrote: »
    God I so want and need it! I could set me and my mum a nice little business up and we could work for ourselves and be very content!

    Put it in a savings account for when you have children, or use it to expand your business. Give some to charity too?
    No help on the legal front I'm afraid - just don't tell the ladies you're pulling!

    its only 4 figures haha!

    a lot of money, but 4 figures doesnt go far nowadays, especially not when setting up a business! (dependin on the business of course!)

    x
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Littleali wrote: »
    its only 4 figures haha!

    a lot of money, but 4 figures doesnt go far nowadays, especially not when setting up a business! (dependin on the business of course!)

    x
    It could be anything up to £9k!
    Only need around half of that at the very maximum to start ourselves off with want we want to do :D
    Then I'd put half of the remainder away, quarter to RSPCA and a quarter on treats - if it was 9k that is!
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    VinylVicky wrote: »
    It could be anything up to £9k!
    Only need around half of that at the very maximum to start ourselves off with want we want to do :D
    Then I'd put half of the remainder away, quarter to RSPCA and a quarter on treats - if it was 9k that is!

    fairy muff :)
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    VinylVicky wrote: »
    It could be anything up to £9k!
    Only need around half of that at the very maximum to start ourselves off with want we want to do :D
    Then I'd put half of the remainder away, quarter to RSPCA and a quarter on treats - if it was 9k that is!


    What is it you want to do? or is it top secret?

    If the money had come from a scratch card or lottery I'd be well happy - but everytime I see my dad in pain or his knee's hurting him so much when he goes up the stairs feel bad . :( As all that money has come from years of hard physical work.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    DiamondGeezer wrote: »
    What is it you want to do? or is it top secret?

    If the money had come from a scratch card or lottery I'd be well happy - but everytime I see my dad in pain or his knee's hurting him so much when he goes up the stairs feel bad . :( As all that money has come from years of hard physical work.

    he obviously thinks you have more use for it than him

    you're still young, he probably sees it as a way to let u have a little bit of fun!

    enjoy it, he wants you to!

    x
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    DiamondGeezer wrote: »
    What is it you want to do? or is it top secret?

    If the money had come from a scratch card or lottery I'd be well happy - but everytime I see my dad in pain or his knee's hurting him so much when he goes up the stairs feel bad . :( As all that money has come from years of hard physical work.
    top secret :p
    I did have another fantastic idea but when I checked patents, Holland had beaten me to it :(


    But like Ali said, you're dad wants YOU to enjoy it, respect his wishes.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    VinylVicky wrote: »
    top secret :p
    I did have another fantastic idea but when I checked patents, Holland had beaten me to it :(


    But like Ali said, you're dad wants YOU to enjoy it, respect his wishes.

    PMed you on MSn but it says you're alseep? :eek2:
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    My mum gave me £5000 a few years ago which went on a car. She wanted to see me enjoy my inhertitance.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Haha my mum has just done her will and she was explaining it all to me. I said I want the money but I don't want her to die! I won't be able to enjoy the money if she's dead :( I said can I just have the money now instead? She laughed and said 'no I'm using it!!'. Damn. I could really use 4 grand right now
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    IIRC you can be given up to £5000 a year as gifts from one person and it's free from tax and inheritance tax if they die in the near future.

    It's far better for you and him for him to give it to you while he's alive, that way the tax man doesn't get 40% of it or whatever it is now.

    Say thank you with a big smile and do something sensible with it.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Definitely put it into savings. My dad left me quite a lot of money in his will, started a pension and the rest is in savings and a bit is even on the stock market! Think your dad will be satisfied and pretty chuffed if you seem sorted for the future. I know the idea of parents one day dying is a depressing one but the money issue is just for their peace of mind really.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Think yourself lucky that you've got an inheritance. My parents don't own bupkiss, and thus inheritance is not something I'll be getting, ever. :rolleyes:
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Ilora-Danon wrote: »
    Think yourself lucky that you've got an inheritance. My parents don't own bupkiss, and thus inheritance is not something I'll be getting, ever. :rolleyes:

    You take being bitter (not a good, amusing, way) to a new extreme.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Ilora-Danon wrote: »
    Think yourself lucky that you've got an inheritance. My parents don't own bupkiss, and thus inheritance is not something I'll be getting, ever. :rolleyes:

    Neither do mine. I've got absolutely nothing coming to me at all. Whats your point? I don't regard myself unlucky because of it. Infact, I haven't really thought about it. I don't give a shit. Life isn't all about money yanno.

    eta: Diamond Geezer - you shouldn't feel bad because you Dad is giving you something now. About a year before my Grandad died, he gave a five figure sum to all three of his children each. He did this because he wanted to see his money be used and help his kids. He then left a bit more to them each when he died. I don't think its uncommon for parent to do this tbh.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    *Snow White Queen* wrote: »
    Neither do mine. I've got absolutely nothing coming to me at all. Whats your point? I don't regard myself unlucky because of it. Infact, I haven't really thought about it. I don't give a shit. Life isn't all about money yanno.

    exactly what i was gonna say! i have no idea whether id get anything coming to me but why would you even think about it? why would you care? surely having your parents alive is more important, who cares what you'd get when you're gone?! shocking.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    FireyFirenze wrote: »
    exactly what i was gonna say! i have no idea whether id get anything coming to me but why would you even think about it? why would you care? surely having your parents alive is more important, who cares what you'd get when you're gone?! shocking.

    :yes: It's not something I've ever thought about. If I do end up getting money from my parents when they die, that would be nice. However, I'm not going to be fussed if I don't get anything from them.

    Ilora-Danon - Stop being so bitter.
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    BunnieBunnie Posts: 6,099 Master Poster
    As an only child of my dad who is divorced, he said I get pretty much everything, but to be honest, apart from sentimental things, I would rather he stayed alive until I did and was happy then popping his clogs and me having a fair amount to 'compensate' for him dying.

    Just thinking about it makes me sad :( but I know it is inevitable.

    However, DG, you should pop £3k into bank, and buy things now that you want. As people have already said, it is what he wants, and he wants you to be happy. I would like to watch people spend the money I was leaving for them...also he can keep a watchful eye on how you spend it while he is here ;)
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Put it in the bank, if you have to pay tax on it then the bank sort it out. Inland revenue won't need to contact you or vice versa.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Not so much about his eventual death, I suspect, as a way of stopping the state from making him use this money to support himself in a nursing home. I plan to do much the same, let my kids enjoy my money and stuff my nursing needs...
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    The tax man isn't going to be interested in what you have received - so stuff it in an ISA if you can. Maybe your Dad should have a look at the link below - he will need to keep records of what he has gifted. I believe the gift becomes exempt - or is not counted as part of his estate if he lives for 7 years after the event.

    http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/InheritanceTaxEstatesAndTrusts/DG_10010612
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    Scary Monster wrote: »
    IIRC you can be given up to £5000 a year as gifts from one person and it's free from tax and inheritance tax if they die in the near future.


    Where did you get that information from?

    I've not seen that either that figure or that wording written anywhere online.

    The only time I've seen £5,000 mentioned is if you are getting married

    http://tinyurl.com/38uwul

    according to this website is says:

     £3,000 annual exemption
    Each individual is permitted to make an exempt transfer of £3,000 in each tax year.

    Although this site seems to explain it better

    http://www.litrg.org.uk/help/pensioners/incomesover/understandingiht.cfm
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    My memory, as indicated by the IIRC (if I recall correctly), so am more than willing to be corrected.
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    if you haven't got any immediate plans for it then buy gold and/or silver, don't stick it in a savings account as it will not hold its value. if you must then check out ns&i certificate scheme which tracks rpi +1%, but you can't touch it for a year....
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    Former MemberFormer Member Posts: 1,876,323 The Mix Honorary Guru
    DiamondGeezer wrote: »
    Where did you get that information from?

    I've not seen that either that figure or that wording written anywhere online.

    The only time I've seen £5,000 mentioned is if you are getting married

    http://tinyurl.com/38uwul

    according to this website is says:

     £3,000 annual exemption
    Each individual is permitted to make an exempt transfer of £3,000 in each tax year.

    Although this site seems to explain it better

    http://www.litrg.org.uk/help/pensioners/incomesover/understandingiht.cfm


    TBH it only realllly becomes and issue if your dad does die in the next 7 years - and only then if its over the stated ammounts.
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