IHT Gifts From Joint Account

tododo

Hi all

My parents want to give me 50K or so as a gift to lower the chances of IHT

They are worth on my estimations say 400K tops
I just wanted to know how it works..... I relaise theres a 7 year rule

How would it work if the money comes from their joint account and then one of them dies say 2 years from now and the other say 8 years from now

Would the 50K be excluded from the estate in this example

Horrible even thinking abou it to be honest!

Is it worth getting a letter from them to say its a gift etc

Thanks

booksurr

if they are "only worth" 400k combined then IHT is irrelevant given the tax free thresholds

anyway a joint account means joint: 50/50 so 25k each less the gift allowance of 3k (plus another 3k if no gift made in the previous year)

but as said, with a combined worth of 400k, they (not you) have little to fear about IHT

CLAPTON

tododo wrote: »

Hi all

My parents want to give me 50K or so as a gift to lower the chances of IHT

They are worth on my estimations say 400K tops
I just wanted to know how it works..... I relaise theres a 7 year rule

How would it work if the money comes from their joint account and then one of them dies say 2 years from now and the other say 8 years from now

Would the 50K be excluded from the estate in this example

Horrible even thinking abou it to be honest!

Is it worth getting a letter from them to say its a gift etc

Thanks

they each have a 325000 IHT allowance which can be transferred
to the surviving spouse.
so the second deceased estate will have 650,000 allowance
plus of course there will be an extra allowance if a property is involved

so not point from IHT purposes

tododo

Thanks both thats great to know