Gifting money to family

Keep_pedalling

enthusiasticsaver said:

He can gift money to whoever he wishes but if he dies within 7 years it will still be considered to be within the estate and some IHT may be due depending on when he dies and how close to the 7 year limit.  There is a taper relief which reduces as the 7 year limit gets nearer.  It is called a Potentially Exempt Transfer. 

I don't think the deprivation of assets would apply here as he presumably would not be applying for care costs but if he does then certainly gifting significant amounts away to avoid having to pay care costs would not be advisable.  He needs to think carefully  as to how this will affect his spouse going forward and indeed his own situation if he is ill and needs care himself. 

Taper relief only applies to gifts in excess of the NRB and even then only to the portion above the NRB.