IHT Donations to Charity/Lifetime Memberships

claire111
claire111 Posts: 286 Forumite
Part of the Furniture 100 Posts Combo Breaker
Hi

From the National Trust website -

"As the National Trust is a registered charity (registered charity number: 205846), the gifts that people leave us in their wills are exempt from Inheritance Tax. They may also be exempt from Capital Gains Tax. Our Legacy Administration team will be happy to help you so that you can manage the estate in the most tax-efficient way possible".

"
Most National Trust members already pay their subscriptions using Gift Aid, helping us to reclaim many millions of pounds every year at no extra cost to themselves." 

If my father buys lifetime memberships of National Trust (registered charity) for all his grandchildren would this gift/donation be outside of his Estate for Inheritance Tax purposes when the time comes ? 

Many thanks if anyone can advise


Comments

  • DullGreyGuy
    DullGreyGuy Posts: 17,219 Forumite
    10,000 Posts Second Anniversary Name Dropper
    claire111 said:
    If my father buys lifetime memberships of National Trust (registered charity) for all his grandchildren would this gift/donation be outside of his Estate for Inheritance Tax purposes when the time comes
    Lifetime membership is a one off purchase, given you say he has already purchased them... when was that? Anything gifted more than 7 years ago is outside the estate. He can gift up to £3k per year and it's outside. If you keep producing him grandkids and he keeps buying them and the totals more than £3k per year then no, there is no carve out for National Trust as the grandkids are the beneficiaries even if NT can reclaim the tax.
  • claire111 said:
    If my father buys lifetime memberships of National Trust (registered charity) for all his grandchildren would this gift/donation be outside of his Estate for Inheritance Tax purposes when the time comes
    Lifetime membership is a one off purchase, given you say he has already purchased them... when was that? Anything gifted more than 7 years ago is outside the estate. He can gift up to £3k per year and it's outside. If you keep producing him grandkids and he keeps buying them and the totals more than £3k per year then no, there is no carve out for National Trust as the grandkids are the beneficiaries even if NT can reclaim the tax.
    Could such gifts be regarded as ‘regular gifts out of income’?
  • Jeremy535897
    Jeremy535897 Posts: 10,711 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    Unlikely as by definition a lifetime membership is a one-off. The NT here is a red herring. The gift of the lifetime membership is just a gift like any other. It's quite expensive. 
  • [Deleted User]
    [Deleted User] Posts: 0 Newbie
    Eighth Anniversary 1,000 Posts Photogenic Name Dropper
    edited 1 May 2023 at 10:38PM
    Unlikely as by definition a lifetime membership is a one-off. The NT here is a red herring. The gift of the lifetime membership is just a gift like any other. It's quite expensive. 
    £2020 🤔  
  • claire111
    claire111 Posts: 286 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    edited 22 January 2024 at 3:51PM
    Unlikely as by definition a lifetime membership is a one-off. The NT here is a red herring. The gift of the lifetime membership is just a gift like any other. It's quite expensive. 
    £2020 🤔  

    I'm looking at Lifetime Family Membership at £2640.

    It is a lot of money but it covers all children and grandchildren up to age 18, allows them to use it independently of the parents they just need to borrow the card - I have rung and double checked this. 

    So if bought for my daughter in her 20's, she would get use of it for possibly 50 years along with her husband, children and her grandchildren....  :smile:

  • Jeremy535897
    Jeremy535897 Posts: 10,711 Forumite
    10,000 Posts Fifth Anniversary Photogenic Name Dropper
    Per NT:
    "For two adults and all their children or grandchildren up to the age of 18. Adults must be lifetime partners, living at the same address."

    Lifetime memberships for the NT are not donations for gift aid purposes, unlike annual memberships.
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