Keith Churchouse

- Send a question to the experts
- Find an IFA in your area

Can my mum give me a lump sum, tax-free? My dad died recently and everything went to my mum. She wants to give me and my brother a lump sum each, but we are unsure of the tax implications - can you help?
JL, Penrith

I am sorry to note your dad's death. If he wrote a will, your mother can - within a two-year period (and with the help of your legal advisers) - make a Deed of Variation to bypass her for an amount (your mother's choosing) and pass this to you directly.

This can currently be tax-free as long as it falls below the current nil rate band of £300,000 in total (taking any other gifts into account).

Speak to your legal advisers about the Deed of Variation option. In addition, your mother has a gift allowance of £3,000 each year, tax-free, and if she did not use last year's allowance then she can use this as well.

Keith G Churchouse, Churchouse Financial Planning