GP not sorting out their money gifting properly WHO will have to pay any IT ???

[HowdoyoureallyKnow]

So a GP has decided to down size and they have a considerable sum they want to pass on now to our dc
Wonderful to our DC we are happy however there are strict rules it has to be regular and out of surplus income .
They have given regularly but don't seem to be aware of the surplus income part ?

Who will have to pay it if they die ? One DC os nearly 18 so I assume they pay it out of their pot and the other is 12 so who would pay theirs ?

Is this correct? Even if the GP is using capital (not income) to do this? I’m asking as GF has offered this for our DS and I’m not finding it easy to check how we record this for IHT.
Do you have a source or link you could share? Thanks!

Given that things like school fees are regarded as PETs that may be liable for IHT if the donor doesn't survive for 7 years, I would be very surprised if payments to university did. They would only be exempt if meeting the regular gifts out of income rule.

I even remember a question to a newspaper, where grandparents paid for a joint family holiday for everyone - a huge villa - and this was counted as a gift even though they were on the holiday as well! That one surprised me.

@theturtleswims thank you !
That's very interesting re joint accounts ??
I think it's a joint account but mil has never worked so I'm assuming it's just fil ?

@Holymolyrigmorole interesting so you think you should be recording all this on your side ?

You see I would have thought this is all on the exectuors and the estate ?

Sounds like it. The rule annoyed me when I read it. It seems to be whichever way works best for HMRC, that's the way they want it!

Sounds like it. The rule annoyed me when I read it. It seems to be whichever way works best for HMRC, that's the way they want it!

Yes I keep a record as does my FIL. I think it’s going to be complicated when it comes to it (hopefully not any time soon, though he is 94) so I keep notes in case they are needed in the future.

edited to add: that he’s made things complicated due to his living expenses which we pay and he reimburses so I have a record to account for this a desperate to financial gifts he has made us

That record is more useful for you - I have similar with my mum, I pay bills for her and she re-imburses.

The record is important to me as it proves to HMRC that the money she is paying me is going out on her expenses, rather than being my taxable income.

So it would help me to make notes but really it's the estate who need to do this