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7 year rule on gifts

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  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    IME solicitor executors take a pragmatic view on the gift stuff,

    In most cases they ask the relatives any gifts we should know about.

    It would be cost prohibitive for them to analyse the finances in the detail required and it is near impossible to identify when the gifts were in the £100s and went over £250pp becoming PETS.
    (Mum taking you out for lunch once a week could go over £250 in a year how many count that?)

    Once IHT kicks in they might be a bit more diligent looking for big changes in the estates value over the last view years, if it has broadly stayed the same there won't be a lot to find.
    Often a big expense can be explained, that was the world cruise, that was the £30k Rangerover, now worth £15k.

    Most people could loose a few £k from their accounts fairly quickly, its the big lumps that are harder and need to be accounted for.
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