From: John Boyle 
Newsgroups: uk.finance
Subject: Re: Gran giving away inheritence before she dies.
Date: Wed, 1 Nov 2006 13:06:17 +0000

In message <1162381453.459687.284090@b28g2000cwb.googlegroups.com>, 
bevbot100@yahoo.co.uk writes
>My Nan owned her own house and I was one of three benifactors

??? beneficiaries, surely.
> in her
>will. Due to ilness she has recently decided to move in with my Dad and
>sell her house.
>
>Her house sold for £200k (ie below IHT threshold) and she has decided
>to distribute it to us before she dies.
>
>Now I understand that there are "disposal of assets" implications for
>paying for and care that she might need in the future and so we may end
>up having to pay for that.

Which will be better than letting her go into a smelly council funded 
place. She deserves better than that and that is what she should spend 
her money on.
>
>...but am I ok to accept this money now?

Yes.
>
>...what about Capital Gains Tax?

Not applicable,
>
>...are there any other issues I have over looked?
>
Yes, if she has already given away £85k or more then if she dies within 
seven years of when she gave the first lot away then you may have some 
IHT to pay.
-- 
John Boyle