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Financial gifts, wills, and disinheritance
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Bennygoodman
Posts: 1 Newbie
My question is to do with financial gifts -- I know that this can still form part of the estate for inheritance tax purposes up to 7 years after death, but what if someone's estate isn't anywhere near the inheritance tax threshold? Can people give away as much as they like to whoever they like, or will this be seen as "cheating" other family members who may otherwise have had prior rights under inheritance law? Obviously, what I'm talking about here is a situation where someone doesn't want one of their children to get any money, but the law says that the child (well, adult child) will be entitled to something regardless of what the parent says in their will. Also, the situation here is in Scotland, and the amounts we're talking about here are low tens-of-thousands.
So much is written on this subject in relation to inheritance tax, but cannot find anything online in relation to someone giving away money to someone in the family, so that someone else in the family gets nothing.
So much is written on this subject in relation to inheritance tax, but cannot find anything online in relation to someone giving away money to someone in the family, so that someone else in the family gets nothing.
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Comments
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Nothing to stop anyone giving everything away even in Scotland.
Not unknown for that to happen anyway to avoid confirmation process1 -
Bennygoodman said:My question is to do with financial gifts -- I know that this can still form part of the estate for inheritance tax purposes up to 7 years after death, but what if someone's estate isn't anywhere near the inheritance tax threshold? Can people give away as much as they like to whoever they like, or will this be seen as "cheating" other family members who may otherwise have had prior rights under inheritance law? Obviously, what I'm talking about here is a situation where someone doesn't want one of their children to get any money, but the law says that the child (well, adult child) will be entitled to something regardless of what the parent says in their will. Also, the situation here is in Scotland, and the amounts we're talking about here are low tens-of-thousands.
So much is written on this subject in relation to inheritance tax, but cannot find anything online in relation to someone giving away money to someone in the family, so that someone else in the family gets nothing.On the tax side, the value of any taxable gifts made within 7 years of death is deducted from the IHT tax allowance. So if your estate is below this lower level there will be no IHT to pay.People can give away as much as they like without issues arising as long as they dont impoverish themselves.0 -
Bennygoodman said:My question is to do with financial gifts -- I know that this can still form part of the estate for inheritance tax purposes up to 7 years after death, but what if someone's estate isn't anywhere near the inheritance tax threshold? Can people give away as much as they like to whoever they like, or will this be seen as "cheating" other family members who may otherwise have had prior rights under inheritance law? Obviously, what I'm talking about here is a situation where someone doesn't want one of their children to get any money, but the law says that the child (well, adult child) will be entitled to something regardless of what the parent says in their will. Also, the situation here is in Scotland, and the amounts we're talking about here are low tens-of-thousands.
So much is written on this subject in relation to inheritance tax, but cannot find anything online in relation to someone giving away money to someone in the family, so that someone else in the family gets nothing.0 -
https://www.harpermacleod.co.uk/hm-insights/2019/june/even-witches-cant-avoid-legal-rights-wills-and-why-you-cant-disinherit-a-child-in-scotland/
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm15054#:~:text=Under%20Scots%20Law%2C%20where%20Bank,the%20account%20to%20the%20survivor.
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