I have 4 children and have recently given each £120,000. Two of them live abroad, 1 in Oz and the other in the US. Does the 7 year rule apply in these 2 cases?
Yes it applies to you not them. Different rules may apply to them but the 7 year rule applies to you.
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Before you spend, remember the MSE Money Mantras. Ask yourself, do I need it? Can I afford it? If the answer is NO to any of those questions, DON’T buy it. (Quote from MSE 15/11/22)
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As your gifts exceed your NRB there could be a call on those gifts for IHT purposes should you not survive 7 years. This is only really a problem if you have given so much away that your residual estate does not have the funds to meet the tax bill. Taper relief will also apply to the part of the gifts that took you over £325k
For the sake of your executors, please make sure you document these and any other gifts and keep a copy with your will.
If the OP died pennilessly and their estate could not meet the tax payments, will HMRC chase those gifted to in the uk and or abroad? I'm guessing they may do depending on if it was worth their while.
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Before you spend, remember the MSE Money Mantras. Ask yourself, do I need it? Can I afford it? If the answer is NO to any of those questions, DON’T buy it. (Quote from MSE 15/11/22)
Politeness & courtesy are some of the few things in life that are free. Please remember that when posting, I may ignore permanently the unpolite, tedious, unconstructive and deliberately obtuse comments. Many thanks.
Replies
Before you spend, remember the MSE Money Mantras. Ask yourself, do I need it? Can I afford it? If the answer is NO to any of those questions, DON’T buy it. (Quote from MSE 15/11/22)
Politeness & courtesy are some of the few things in life that are free. Please remember that when posting, I may ignore permanently the unpolite, tedious, unconstructive and deliberately obtuse comments. Many thanks.
For the sake of your executors, please make sure you document these and any other gifts and keep a copy with your will.
Before you spend, remember the MSE Money Mantras. Ask yourself, do I need it? Can I afford it? If the answer is NO to any of those questions, DON’T buy it. (Quote from MSE 15/11/22)
Politeness & courtesy are some of the few things in life that are free. Please remember that when posting, I may ignore permanently the unpolite, tedious, unconstructive and deliberately obtuse comments. Many thanks.