Iht 7 year rule

2stixoftwixes

Have I got this right
My mum last year gave my brother £50k to pay off his mortgage
My dad died 10 years ago, so his threshold was added to my mums so £650k

My mum has about £250k in the bank and no property as she rents.

Therefore can I safely assume that because her whole estate is well under £650k
The £50k gift to my brother will NOT be liable for iht if she doesn't survive the full 7 years as it will be part the £650k threshold?

Thanks

Frogletina

2stixoftwixes said:

Have I got this right
My mum last year gave my brother £50k to pay off his mortgage
My dad died 10 years ago, so his threshold was added to my mums so £650k

My mum has about £250k in the bank and no property as she rents.

Therefore can I safely assume that because her whole estate is well under £650k
The £50k gift to my brother will NOT be liable for iht if she doesn't survive the full 7 years as it will be part the £650k threshold?

Thanks

That's correct...no IHT will need to be paid

sassyblue

That’s the way I read the rules too, I have a similar issue with dad's gifts.

Keep_pedalling

No IHT to pay but it still has to be declared on the return if she dies within 7 years of the gift.

2stixoftwixes

Thanks. I thought I had it right