Deprevation of assets

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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.

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  • Browntoa
    Browntoa Posts: 49,325 Forumite
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    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
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  • Sea_Shell
    Sea_Shell Posts: 9,508 Forumite
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    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.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.38% of current retirement "pot" (as at end April 2024)
  • beduth
    beduth Posts: 91 Forumite
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    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
    Sea_Shell Posts: 9,508 Forumite
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    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.
    How's it going, AKA, Nutwatch? - 12 month spends to date = 2.38% of current retirement "pot" (as at end April 2024)
  • missile
    missile Posts: 11,691 Forumite
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    Who knows what lies ahead, e.g. you or your wife may need go in to care?
    "A nation's greatness is measured by how it treats its weakest members." ~ Mahatma Gandhi
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  • Tom99
    Tom99 Posts: 5,371 Forumite
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    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.
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