IHT / Cash Gift & 7 year rule

Hi,

If a parent gifts a cash gift of £350k to their child and survives over 7 years would there any IHT liable ? 

Thank you 

Comments

  • Grumpy_chap
    Grumpy_chap Posts: 14,384
    First Anniversary First Post Name Dropper Combo Breaker
    Forumite
    Hi,

    If a parent gifts a cash gift of £350k to their child and survives over 7 years would there any IHT liable ? 

    Thank you 
    Is the parent's Estate within IHT territory in the first place?  For them to be making a gift of this size, I assume that IHT may well be a factor for the Estate.

    Is the gift being given totally without reservation?

    If the parent survive the 7 years, then there will be no IHT liability.

    Another factor to consider is whether the parent has sufficient other assets to meet all their reasonably foreseeable needs before death.  This includes all care costs.  If the parent does not retain sufficient other assets then DoA (deprivation of assets) may come into consideration.
  • Parent was self employed and did well etc

    Adult child has ongoing health problems and is in / out of work as a result meaning difficulties potentially with obtaining or sustaining mortgages etc.

    Parent is considering to gift money so that child can buy a property outright with it in child’s name, parent would not live there & would be totally without reservation etc

    Parent is in good health and likely to survive 7 years but was unsure about IHT liability as the gift would be over £325k 

    Thank you 
  • Parent was self employed and did well etc

    Adult child has ongoing health problems and is in / out of work as a result meaning difficulties potentially with obtaining or sustaining mortgages etc.

    Parent is considering to gift money so that child can buy a property outright with it in child’s name, parent would not live there & would be totally without reservation etc

    Parent is in good health and likely to survive 7 years but was unsure about IHT liability as the gift would be over £325k 

    Thank you 
    As stated - none if donor lives for seven years thereafter. 
Meet your Ambassadors

Categories

  • All Categories
  • 341.5K Banking & Borrowing
  • 249.6K Reduce Debt & Boost Income
  • 449.1K Spending & Discounts
  • 233.8K Work, Benefits & Business
  • 605.6K Mortgages, Homes & Bills
  • 172.4K Life & Family
  • 246.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.8K Discuss & Feedback
  • 15.1K Coronavirus Support Boards