Advise please

Petea_2

This is my first time posting on here so I apologise if this isn't really in the right place.

My mother died recently, I am the sole executor for her estate. Her desire was for me to gift some money to her grand-daughter although everything was left to me to sort out.

My question is: What's the most that I can gift her without her being liable to tax? I have a feeling it's around £3000 per year but could anyone advise please?

CLAPTON

are you the sole beneficiary?

Petea_2

Thanks for your reply - Yes I am.

dzug1

You can gift her as much as you like without any immediate liability for tax.

The potential is for inheritance tax if you die within 7 years AND have an estate over the limit (currently £300K plus).

If this is likely you can arrange a Deed of Variation to get around it.

ohmsoft

By grandaughter, is she your daughter or the daughter of a sibling of yours- and is she under 18?

The reason I ask is that if a gift comes from a parent and the interest gained from it by a minor is £100+ the interest will be deemed as that as the parents for income tax purposes. (so not using her nil rate band).

A deed of variation would work for this as well