Gift

Question 1

Additional information for Gift to Daniel

Answer 1

Will the payment of 50k be via a gift or a loan
Planning on making any other lifetime gifts.
If it is a loan, what term do they wish to lend, how much interest do they want to charge.
What is Daniels tax status.
Prefer to use cash or consider assigning segments from IB.
Gift in joint names?

Question 2

Maximise value of estate passed to children

Answer 2

Will the payment of 50 be a gift or a loan.
Planning any other gifts.
Prepared to rewrite the bond to include their children as additional lives assured.
Place bond into DGT.
Prepared to use non pension assets 1st to provide income in retirement.
Are they prepared to make regular use of gift exemptions.
Prepared to take out WOL joint life plan.

Question 3

Loan to Daniel

Answer 3

Loss of access to capital and loss of growth on these funds.
Debt remains part of their estate/ no reduction in their estate value for IHT.
They will need to decide on term of the loan and rate of interest and if they want security loan.
If loan is made jointly they will both pay tax on the interest received. Jane is a higher rate tax payer.
Daniel may not be able to repay loan.