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gifts of money from mother

Last post Tue, Nov 24 2009, 11:24 AM by tt lady. 1 replies.
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  •  Tue, Nov 24 2009, 11:24 AM

    Re: gifts of money from mother

    You need to check your mortgage documentation to find out if there are any penalties for paying part of it off early. If there are you might consider waiting until they no longer apply or take the money from your Mother and put it in the best savings account you can find until you can repay without penalty.

    If you've got no early redemption penalties then there is no reason why your Mother can't give you as much cash as she likes for whatever reason. If you've got siblings then it would be wise to get your Mother to let them know what she is doing and she needs to be sure she doesn't need the money to live off but I'm assuming she's already considered that aspect. The first £3,000 a year will have no inheritance tax implications and if she lives for 7 years then the rest of it will be free of inheritance tax as well. If she dies before the 7 years are up then part of the gift would fall into her estate and there may be inheritance tax to pay on it (depends on the value of the rest of the estate).

    • Post Points: 5
  •  Tue, Nov 24 2009, 9:15 AM

    gifts of money from mother

    My mother wants to gift me cash to help pay off my mortgage. She also wants to pay money monthly towards my mortgage to also reduce it, from her bank account. Is this allowed and if not what are the penalties? She just wants to be seen to be helping and is not trying to avoid any taxation etc or reduce her capital/assets in case she needs to go into care in the years ahead as she still has her house for that purpose. Any advice would be appreciated.
    • Post Points: 20