exempt estate / gifts before death / inheritance tax?
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morphy_richards
Posts: 33 Forumite
Hi,
I understand that the threshold of the estate for inheritance tax is £325,000 and if it is then gifts (say to the deceased children) made within 7 years before death are taxable.
If the majority of value of the estate is in the property and the spouse of the deceased is still alive and living in the property, where they were together for their married lives, do the gifts made by the deceased still need to be taxed under inheritance tax?
Thanks.
I understand that the threshold of the estate for inheritance tax is £325,000 and if it is then gifts (say to the deceased children) made within 7 years before death are taxable.
If the majority of value of the estate is in the property and the spouse of the deceased is still alive and living in the property, where they were together for their married lives, do the gifts made by the deceased still need to be taxed under inheritance tax?
Thanks.
0
Comments
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Was the property held as a jont tenancy or as tenants in common?
Assuming you are in England or Wales?The person who has not made a mistake, has made nothing0 -
Anything passing to the spouse is free of inheritance tax
So only if the gifts themselves (plus anything else not passing to the spouse) were in excess of the threshold would there be tax due0 -
morphy_richards wrote: »Hi,
I understand that the threshold of the estate for inheritance tax is £325,000 and if it is then gifts (say to the deceased children) made within 7 years before death are taxable.
If the majority of value of the estate is in the property and the spouse of the deceased is still alive and living in the property, where they were together for their married lives, do the gifts made by the deceased still need to be taxed under inheritance tax?
Thanks.
Incorrect.
The gifts(PETS) in the previous 7 years use up the nill rate band and all the tax fall on the estate in most cases, there are some rare circumstances where the gift may be taxed.
What may be relevent is the transferable nillrate band if there is a surviving spouse as the PETS may reduce this.
Some executors don't look that deep into the gifts made in the previous 7 years.
Transfers between spouses and inheritance by a spouce are one of the exemptions.0 -
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