Can my mum gift money

[Jess040404]

My mum wants to gift me £3,000 and put £4,000 in each of my 2 children's accounts, can she do do this as I thought you could only gift £3k in one tax year? Thanks

I think if she goes over the limit it may incurr inheritance tax if she dies within 7 years. Although you can use 1 year before allowance so if she didn't gift any last year can give 6k this year

Jess

She can gift it, yes.

If she dies within 7 years and her estate is subject to IHT, then part of the gift may be taxed.

My mum was diagnosed with Alzheimer's 2 years ago. My 2 sisters have transferred the majority of her money from her bank account into one in their name, can they legally do this?

Not if they did it to avoid care home fees. That wouldn't be legal.

Um, nope!! That's theft!

They have taken control of all her building society books, her cheque books etc and have been spending on her account and although she has Alzheimer's at the moment it's just short term memory loss, to most people she is the same as she always has been. When I questioned my sisters, they just say mum said it was ok. If I ask mum, she just says I don't think I agreed to that but I cannot remember.
I'm talking cash withdrawals, holiday flights, ultility bills etc, 2 cheques for £12 k each. I'm furious and don't know what to do about it.

Has she signed a power of attorney?

Is she in the social care system for her AD?

I'd contact Age UK immediately and ask for their advice on how to proceed with this. Sounds as if your sisters' actions are bordering on the criminal.

As far as I am aware she has signed power of attorney nominating the 3 of us.

I think that's a very good idea VM.

PoA is supposed to be used sensibly, not just to give the holder free access to the money!

This might give guidance

www.gov.uk/government/publications/register-an-enduring-power-of-attorney

Re the gifting with a POA I believe it is along the lines you can only continue to make gifts as the Donor previously has. So if she made geese gifts to you regularly you could argue that you are continuing carrying out her wishes.

However witb Dementia there is s reasonable expectation of requiring residential care in thd future so a gift of that size likely to come under Deprivation of assets for which SS can gp back any length of time.

Your Sisters are behaving illegally and really should be reported to the Court of Protection. Definitely contact Age UK or Alzheimer's Society to check this out properly.

Yes that rings a bell sugar, when I first posted I didn't realise there was a POA involved.

So if granny always gave you £50 for Xmas, you can keep that up; you can't suddenly decide £5,000 is a fair Xmas present.

Thank you for all your replies, that has certainly given me something to mull over tonight.

They are stealing.
You need to address this now, because if you don't you will not be able to have it redressed on death.