Inheritance tax on Gift

26 Posts

Hi my Dad passed away last year and we went through the probate process which has completed now.
He had a small amount of money in his account and his estate was below IHT
The money he did have in his account was gifted from my grandad (his father) (still alive) 5 years ago.
His father has recently had some health issues and a friend of the family has advised that if he is to pass away within the next 5 years I would need to pay tax on the money my grandad gave to my dad.
I wonder if someone could advise on the validity of this and also what the terminology is called so I can look into this
Thanks
He had a small amount of money in his account and his estate was below IHT
The money he did have in his account was gifted from my grandad (his father) (still alive) 5 years ago.
His father has recently had some health issues and a friend of the family has advised that if he is to pass away within the next 5 years I would need to pay tax on the money my grandad gave to my dad.
I wonder if someone could advise on the validity of this and also what the terminology is called so I can look into this
Thanks
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Replies
But it has no effect on your father's estate. Just if any of his family inherit from grandpa, it may be a bit less.
But grandpa may have a £1m-gifts IHT allowance anyway.
When my grandad sold his house he had some accommodation created at one of my family's home to be closer to support. I have no idea how this was arranged, he might have just given them the money for the building work. I also don't know the timeline on if that happened before he gifted my late father his money. Also not clear if this then passes on to us given the money wasn't actually gifted to us and the person that it was gifted is no longer with us (if that makes any sense)