Gifting Legal Rights - Scotland

Gers

Following the death of my beloved mother last year her estate was finalised in October last year. I am the only beneficiary.

Once Confirmation and sale of my DM's property I sent Legal Rights amounts of £10,000 to each of her five grandchildren - the children of my deceased brother.  There are no other grandchildren. The £10k exceeds the actual amount of monies due to them under LR.

Do these monies lie within my estate for seven years?

buddy9

The legitim fund (legal rights) amount passed to the grandchildren is their entitlement and does not sit within your estate. The excess money that you gave them is a gift. The way to avoid this being a gift is by Deed of Variation for IHT purposes within 2 years of the death.   

Gers

buddy9 said:

The legitim fund (legal rights) amount passed to the grandchildren is their entitlement and does not sit within your estate. The excess money that you gave them is a gift. The way to avoid this being a gift is by Deed of Variation for IHT purposes within 2 years of the death.   

Many thanks, I will do that. 

Marcon

Gers said:

buddy9 said:

The legitim fund (legal rights) amount passed to the grandchildren is their entitlement and does not sit within your estate. The excess money that you gave them is a gift. The way to avoid this being a gift is by Deed of Variation for IHT purposes within 2 years of the death.   

Many thanks, I will do that. 

Depends how much falls into the 'gift' category. See https://www.gov.uk/inheritance-tax/gifts

May not need a DofV.