Will, monetary gifts, estate

Tiger34590

Hi I'm looking for some advice please. My husband's father recently passed away and his will states that his estate is to be split between his three children. He had about £100,000 in total on his death.


However, his solicitor has asked for us to tell them about any gifts or loans he made to us in the last seven years. He did in fact give us a few different amounts, two of £1,800 in 2012, then £12,000 and £20,000 in 2013 (to help us buy a house) and another £5,000 in 2014. These were gifts to help us as we have three young children.


He has previously helped his other two children in the past but a lot longer ago, when his daughter got married and had children (who are now 21 and 18) and when his other son had his children who are now in their late twenties. My husband is in his 50s and never expected to have children, so never previously had financial help from his father, but then we met, got married, bought a house and have had three children.


What I am wondering is, will the fact that we received these gifts within the last seven years mean this will be taken out of our portion of the estate? Or is it taxable?

getmore4less

The gifts in the last 7 years are to do with IHT, the gifts use up the nil rate band first.

if the assets in the estate are around £100k with his nil rate band being at least £325k unless the gifts in 7 years total over £200k there will be nothing to worry about.

anything older than 7 years can be ignored.

Tiger34590

Ah ok thank you. So it won't affect the division of the estate either then?

Mojisola

Tiger34590 wrote: »

So it won't affect the division of the estate either then?

Not unless the will says that the earlier gifts are to be deduced from the final inheritance.

Tiger34590

Thank you for your help