How much can you give away re IHT

Legacy_user

My dad's asset, including house and car, would currently be valued in the region of £360,000. He is a widower aged 73 and not in the best of health so he is concerned about IHT in the event of his death.

Basically he wants to know how he can legally get rid of most of the £60,000 above the IHT threshold. He has this in the form of savings and Premium bonds? i.e. how much can he gift to his grandchildren and children at any one time.

oldwiring

This may help.

Scroll down to exempt gidts.

CLAPTON

he can legally give away whatever he likes and to who ever he likes.

however, if he dies within 7 years most of this money will count as part of his estate and so the estate will pay IH tax on it.

However, if he doesn't give it away then it will be part of his estate anyway so his children/grandchildren are no worse off and in fact may be better off.

Basically the first 3,000 each year is exempt from IH tax so this would mean giving away now is better than waiting until death ..
anyway he may not die in the next 7 years.