Gift of cash question


P

Peterw

I am thinking of giving some cash to my daughter who is married.

Is there any way I can do this and yet ringfencing it so that if she and her
husband ever split up he will have no claim on that gift?

Thanks
 
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R

RobertL

I am thinking of giving some cash to my daughter who is married.

Is there any way I can do this and yet ringfencing it so that if she and her
husband ever split up he will have no claim on that gift?

Thanks
How about lending it to her (without interest) with an exchange of letters to make it clear that it is a loan and not a gift.

Robert
 
C

Chris Blunt

How about lending it to her (without interest) with an exchange of letters to make it clear that it is a loan and not a gift.
That sounds like an interesting idea. Presumably if they did split up
the husband would be jointly liable for her debt.

Chris
 
T

tim....

Chris Blunt said:
That sounds like an interesting idea. Presumably if they did split up
the husband would be jointly liable for her debt.
not if he wasn't party to the "exchange of letters"

tim
 
D

David Woolley

RobertL said:
How about lending it to her (without interest) with an exchange of letters to make it clear that it is a loan and not a gift.
If you expect to have inheritance tax charged on your estate, a loan
would remain chargeable to your estate indefinitely, whereas a gift
could be completely ignored after 7 years. Trying to play it both ways
would be considered fraud.

Fortunately, as there is no business relationship, I think I'm right in
saying that she is saved from paying tax on the difference between the
interest rate and a commercial rate.
 
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P

Peterw

This is not suggested to evade IHT but to avoid her husband (or estranged
husband) having a claim on 50% of the "gift".

Peter
 
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