Monetary Gifts and Inheritance Tax

beekay1943

I have calculated my wife's and myself's individual assets, and neither of us has total assets over the current Inheritance level of £235, even if our term life insurance payouts are included. This year, we intend gifting our family (son, daughter, 3 grandchildren and 2 great-grandchildren) with varying amounts (from £10k to £2.5k and totalling £40k) as we would prefer to see them enjoying that money while we are still alive. Is it correct that these gifts are possible and will NOT be subject to Inheritance Tax whether or not we live for another 7 years?

Keep_pedalling

There there are no limits to how much people give and as you are well below your IHT exemptions IHT is not an issue. Even if your estate was in IHT territory any tax due would come out of the estate not clawed back from the people receiving the gifts. 

Mojisola

IHT won't be an issue but deprivation of assets could be if you give away a substantial percentage of your savings and then need care.

NannaH

It rather depends on your ages and state of health, 60’s and good health then the LA would have difficulty proving intent.  80’s and poor health, not so much.