Paying for the daughter's wedding - PET?
If parents plan to pay for their daughters wedding is that a PET?
Has there been a transfer of value? Parents estate has decreased, but daughters estate has not increased....? Or has it by dint of not having to foot the bills themselves?
If the invites go out as "Mr and Mrs so-and-so invite you to the marriage of their daughter", then is the cost of the wedding the parents anyway as it is them hosting the bash....?
Cost of wedding will be in excess of but, for the wedding gift exemption to apply it needs to be "on or shortly before" the event - how long is shortly before......? I was forking of my wedding months before it happened!!
Am I just over think this and it's not an issue......
Comments
I don't think so. They are not gifting their daughter the money. As you said, it is the parents hosting the event so I don't see how this can have any IHT implications.
My understanding is they could pay for the wedding and still gift the daughter the wedding allowance of £5k without any issues
I don't know. But if they gave their daughter the money first (and subsequently was used to pay for the wedding), this would certainly be a gift.
If not, the parent's are literally paying the bills - I don't think it's a gift
Yeah it a bit of a grey area for me. Wedding not until 2021 (summer I assume) - so 18 months
If the bills are falling due and the parents are handing over cash for daughter to settle them as their agent then that would be fine for me.
If they are handing her £16K now and saying off you go and sort it out, then that feels PET-ish to me.....
Cannot use the Wedding exemption yet as that needs to be "on or shortly before" and is a gift on account of the event, not to pay for the event.....
I think the parents would actually need to pay the bills so that no money passes through the daughter's hands
Probably safest @Andy_Schleider , yes.