Inheritance guilt

[RB68]

I need to voice this and can't one to one with anyone

I recently found out that I am to be/am in someones will, don't know all the details but it could be a significant amount - we are talking 5 noughts of course it could come to nothing if money is eaten up by fees etc but that's the way it goes.

In the mean time after quite an intimate chat I revealed we had been struggling last couple of years having to pay ourselves 50% for a variety of reasons but have worked hard and last Nov we went back to full pay and we are slowly getting back to an even keel.

The outcome of all this is that they want to release some money to me early to help with the tax situation (Currently Will goes over IHT).
This is lovely of them - they are making payts to myself, DH and DD. They intend to do the full whack this financial yr and poss next as well so even now we are talking a fair amount of money - this will pretty much settle all the outstanding issues and give us some to spend on urgent house repairs.

Whats the issue - I am the eldest of 6, I can't tell the others...they are not in the Will as I understand it. This is a relly, but a godparent to me. I am the one that stayed in touch with them, other sibs not really although perfectly polite etc when they see them.

I need to accept graciously, I genuinely can't afford not to frankly we have been swimming against a tide for 2 yrs business wise and are coming out of the deep sea but still need to do more, this will help enormously.

How would you handle this?

I am thinking it will just take a bit of time to settle in. It puts us in a good position for me to also help MIL at nearly 90 who we will need to move soon although she does great all things considered, and both my parents nether of whom enjoy good health although they are younger than MIL.

I was genuinely suprised by the turn of events.

so thoughts?

Don't assume there will be no iht liability. The annual exempt gift amounts are quite low and if giver dies within 7 years of making a gift its value can be included in the estate.

They are sticking to the exempt gift amounts. It may be quite low but its enough to get us out of a hole. Also they are both currently well although experiences with my parents teaches me this can turn on a sixpence

If this is your godparent and your other siblings don’t have much of a relationship with them, I wouldn’t necessarily be worried about too much tension. At least your siblings wouldn’t have a right cause tension. :)

There is inheritance tax to pay on gifts totalling over 325k in the 7 years before death. So if the amount is greater than that is total, the person receiving the gift is liable to pay IHT on it at a sliding rate depending on the amount of time between the gift and subsequent death.

If you have a link that others do not, have no guilt.

The IHT implications would be on the remainder of their estate, not you
and would only kick in if they die within 7 years

accept the gift and be happy in your skin

Thanks people. I think its just getting used to it. We won't reach any where near the 325K prior to the Will, there is plenty there but also other beneficiaries etc. They will stick with gifting 3k each plus any 250 gifts pa I should think (to those not in receipt of the 3k etc).

You are not doing anything wrong.

It is the giver's money to give, as they see fit.

Every gift should be taken in the spirit with which it was given. They want you to enjoy the money. Do that.