Deprevation of assets

beduth

I have come into some money that I do not need. I am keeping some for myself, but would like to give my 4 children some to enjoy. Is it ok to give them say £20,000 each to spend on what they want ? I am 64 in good health and have no intention of dying in the next 20 years.

Browntoa

Yes , as long as you live for 7 years to avoid any tax liability

If you have other assets as you say it shouldn't be challenged , would only be a problem if you were giving everything away

Sea_Shell

If you're not expecting to claim benefits and you have sufficient other assets to cover any future care needs, then shouldn't ever be an issue.

beduth

Wife and I are both in good health, and intend to stay that way. Don't envisage ever claiming benefits as we have more than enough to live off. Just that a friend said we could not give the kids more than £3000

Sea_Shell

As I understand it, The £3000 is only in respect of potential IHT if you don't survive 7 years and IHT would be payable.

missile

Who knows what lies ahead, e.g. you or your wife may need go in to care?

Tom99

If you want to minimise any future IHT then gift your wife £40,000 after which you each gift two children £20,000.
If you did not gift your £3,000 last year you can add that to this year's £3,000, giving you each a £6,000 allowance. Then if you defer giving the last £3,000 each until 6th April you can use next years allowance as well.