Lump Sum Gift & Inheritance Tax?

Magnolian

My father wants to give me a sizeable amount of cash, but he's worried about inheritance tax (ie. that he'll pop his clogs within 7 years). But I said that only applies if his estate is above the threshold where IT begins - his estate isn't large enough for IT to apply.

Would the lump sum be liable for inheritance tax if my father dies within 7 years?

Savvy_Sue

Not if his estate doesn't reach the threshold ...

Keep_pedalling

No, but even if his estate was in IHT territory and died with 7 years the exact same tax would whether he made the gift or not, so there is no tax disadvantage when giving.

As long as it is not going to leave him short for his own needs, including potential care costs, then it is better to give than leaving it all until you are dead.

Magnolian

Savvy_Sue said:

Not if his estate doesn't reach the threshold ...

What is the threshold these days?

MaryNB

Magnolian said:

Savvy_Sue said:

Not if his estate doesn't reach the threshold ...

What is the threshold these days?

£325k. Rising to £500k if you father leaves his home to his children or grandchildren.

Keep_pedalling

MaryNB said:

Magnolian said:

Savvy_Sue said:

Not if his estate doesn't reach the threshold ...

What is the threshold these days?

£325k. Rising to £500k if you father leaves his home to his children or grandchildren.

And up to double that if he is a widower.