My husband and I have joint savings some of which we are cashing in to give our son a large deposit towards a flat. My husband is a lot older than me so we wanted the money to come from me, due to the 7 year rule on Inheritance tax.
My question is - when the money from our joint savings is paid out we would prefer the cheque to be made payable to me or the money to be paid into my sole bank account, so I can then give the money to our son.
However, I think that the money may have to be paid into our joint bank account, in which case we would then transfer the money to my sole account and then I would give it to my son.
In either of the above situations would there be an inheritance tax problem if my husband died within 7 years. I want the money to be seen as an outright gift from me - but would it be frowned upon that half of that money was my husband's and it would only be in my account for a very short time before passing to my son?
Thanks for reading and would really appreciate help with this.
My question is - when the money from our joint savings is paid out we would prefer the cheque to be made payable to me or the money to be paid into my sole bank account, so I can then give the money to our son.
However, I think that the money may have to be paid into our joint bank account, in which case we would then transfer the money to my sole account and then I would give it to my son.
In either of the above situations would there be an inheritance tax problem if my husband died within 7 years. I want the money to be seen as an outright gift from me - but would it be frowned upon that half of that money was my husband's and it would only be in my account for a very short time before passing to my son?
Thanks for reading and would really appreciate help with this.