Inheritance/gift tax?

doofus

My mother died 20 years ago and did not use any of her Inheritance Tax Allowance leaving everything to my father. My father's estate is now worth £550,000 well under the combined Inheritance Tax limit so am I right in thinking that there will be no Inheritance Tax to pay? He is now living in a care home and and has recently gifted £30,000 to each of his children from capital which he does not need the income from. Will we have to pay any tax on this amount as it clearly exceeds the £3000 annual limit allowed and I am uncertain as to whether this applies only to Inheritance Tax? Are there other taxes which apply to gifts of this sort?

Hope you can help.

doofus

fengirl_2

If your father dies within 7 years the gifts will form part of his estate for IHT purposes, but there is no liability on you.

CLAPTON

there are no taxes on gifts as such

if he dies within 7 years of the gift then the value will be included in his estate
however, as his estate can use your mother's IHT allowance his estate will have 650,000 of IHT allowance so no tax will be payable

dzug1

If he gave a gift of £30000 to each of four or more children, that will take the estate into the IHT bracket. 3 or fewer it will miss it.

John_Pierpoint

dzug1 wrote: »

If he gave a gift of £30000 to each of four or more children, that will take the estate into the IHT bracket. 3 or fewer it will miss it.

and how much is the care home costing:eek: