My brother is selling his flat to go into rental. He wants to gift me £45,000 to help me. How should we go about it?
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My mum gifted it to him and he can no longer afford the mortgage repayments so wants me to have it instead as it will help me with certain hobbies I have.
Answers (1)
My understanding of this situation is that your brother can simply give you the money and you bank it. Having said that, as all banks are careful about the source of such large deposits ( for the prevention and detection of money laundering ), you should have a letter from your brother confirming the gifting and it's source, or better still have it paid direct from his solicitor with a covering letter in explanation.
AS far as any tax implications go, your brother would have to survive a further seven years from the date of gifting to ensure that no inheritance taxation situation arises on your part, and even then that's assuming his whole estate has a value over ?325,000 for the year 2011/12.
Your brother sounds a great guy!
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Thank you c1aref and a belated welcome to the forum.
I should have added that if your brother subsequently qualifies for housing/council tax benefits ( or any other means tested state benefit ), he must declare the disposal of assets and funds as it can be viewed as 'deprivation of capital'. I believe the time period here is normally three years from the date of disposal.