The 7 year rule

FreddyP

Hi all,
first time poster so apologies if I get things wrong.
I’d appreciate your help in a family matter please with regards my dad’s estate. My dad left his estate to be shared equally between myself and my 2 sisters. I’ve just found out that he gifted £30k to one of my sisters within the 7 year point. She admitted it to me but when the solicitor sorting out the estate asked if anyone had been given a gift she didn’t disclose the information. I was not gifted anything and my 2nd sister is not admitting/denying anything. Would this £30k as part of her inheritance or will she still get a 1/3 equal share. Also would there be any penalties for her for keeping it from the solicitor?
thanks for any help in this matter.

-taff

No, it's not part of her inheritance unless your father specifically said it was to be in his will or codicil or something. It's only relevant for IHT purposes.  No, she won't get into trouble for it, yes, she is still going to get a third.

Keep_pedalling

Failure to disclose this gift is a problem if the estate had to pay inheritance tax or was very near to it because tax should have been paid on it. 

relaxtwotribes

You and your sisters will inherit one third each of the net estate.  Penalties? Only if she is an executor and the gift needed to be added back into the estate's assets for inheritance tax purposes.  Even then, if your solicitor changes the IHT submission to HMRC declaring an extra £30k, the extra IHT of £12k will come out of the estate, meaning that the three of you will receive £4k less.

AnotherJoe

As above, no you don't all get to claim £10k back from your sister unless dad mentioned that in the will. I've sort of given one of my daughters a substantial loan / gift and for avoidance of doubt my will ensures the other sibling gets that Amount first before the rest is split. 

Bobziz

Gifted or loaned ?