Date: Wed, 6 Jul 2005 19:41:19 +0100
From: GSV Three Minds in a Can 
Newsgroups: uk.finance uk.legal
Subject: Re: Giving money to children

Bitstring <1120672405.bf6692d9e390205b58e3f8ced85d0243@teranews>, from 
the wonderful person AlanG  said
>
>There is another thread on gifting money to buy a house got me
>thinking.
>
>If I win millions on the lotto tonight what would be the pitfalls if
>any of giving my two children half a million each? Just what are the
>rules on giving money away?

You can give it away just fine - however if you snuff it within 7 years 
it (or some tapered part thereof) will form part of your estate and will 
be liable for IHT.

Now if the children had contributed 50p each towards the £1 stake, you 
wouldn't have that problem. That's why lottery syndicates need to have 
written documentation/rules/etc.

Hint. Wink.

-- 
GSV   Three Minds in a Can
Contact recommends the use of Firefox; SC recommends it at gunpoint.