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Inheritance Tax rules

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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?

Comments

  • diystarter7
    diystarter7 Posts: 5,202 Forumite
    1,000 Posts First Anniversary Name Dropper
    Yes it applies to you not them. Different rules may apply to them but the 7 year rule applies to you.
  • I'll be dead!
  • westy22
    westy22 Posts: 1,105 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Your estate (which is technically the HMRC's creditor) lives on beyond the grave :smile:
    Old dog but always delighted to learn new tricks!
  • Thanks. What happens when my estate is insufficient to pay any IHT due?
  • Keep_pedalling
    Keep_pedalling Posts: 20,600 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    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.
  • diystarter7
    diystarter7 Posts: 5,202 Forumite
    1,000 Posts First Anniversary Name Dropper
    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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