Can I gift my children my life savings?

sosos

Hello. I am now retired. I have saved £150,000 and have two grown-up children. I am comfortable and would like to help them. Can I simply give them 75k each and avoid IHT as long as me and/or wife survive at least 7 years?

xylophone

I am assuming that you and your wife are in good health and unlikely to be requiring state benefits/retirement care. https://forums.moneysavingexpert.com/discussion/comment/56042931#Comment_56042931 post 3
Otherwise
http://www.hmrc.gov.uk/inheritancetax/pass-money-property/exempt-gifts.htm
http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/BeginnersGuideToTax/InheritanceTaxEstatesAndTrusts/Afteradeathmanaginganestate/DG_179372

sosos

Thanks for your reply. Should wife or I need care, we have enough to pay our own way. Thanks for your links, my eyesight is not helpful! As far as I an make out, I am only allowed to gift 3k per year? Are there no provisions to give a big sum then?

agrinnall

I haven't looked at the links xylophone provided but I would imagine you have got hold of the wrong end of the stick if you now think you can only gift £3K. That amount is exempt whatever happens, but in many circumstances so is anything else.

In the UK anyone can give any amount of money to someone else without tax being paid either by the giver or receiver. You are already aware of the 7 year limit for IHT, so if, as you say, you both (or possibly 1, depending on the terms of the will and the value and make up of the estate) survive for that time then no IHT will be levied on the gift. If deprivation of assets is not an issue then I would suggest you go ahead and make the gifts - my mum did something similar when she downsized and gave £50K each from the sale of the family home to my sister and me.

xylophone

I am assuming that in the financial circumstances you describe, you have consulted a solicitor about your wills and the way your home is owned - if not, it might be as well to do so and he can go over the Potentially Exempt Transfers/transferring unused inheritance tax allowance as well.

custardy

you up for adopting?

jennifernil

The amount that does not count for IHT is the £3000 per year. If you did not use your £3000 in any year, you can carry it forward to the following year and give £6000. Both you and your wife can do this.

Transfers between spouses are exempt.

For wedding gifts, you can give £5000 each. You can also make gifts out of income.

And of course you can give away whatever you like as agrinall said.

Sceptre

custardy wrote: »

you up for adopting?

Serious subject I know, but................:rotfl::rotfl::rotfl: