Inheritance tax / will question

Vianirone7

Sorry if this is wrong forum I could not see a tax forum .

when a gift made less than 7 years before death is included in the estate for the tax to be paid what then happens to that gift ? Is it included in the estate and split up amoung the wills beneficiary’s or does the money or asset gifted remain in full with the person who received the gift in the first place ? Am I right to think it’s only included in estate for the tax calculation so the actual gift isn’t ’ clawed back’?? 

Just confused about this . 

Thanks

Aretnap

You probably want this forum

https://forums.moneysavingexpert.com/categories/cutting-tax

But briefly no, the gift isn't reclaimed by the estate, though I believe the beneficiary may potentially be liable for tax on it if there isn't sufficient money left in the estate to pay all the tax due.

HappyHarry

The gift still belongs to the recipient of the gift. It would be impossible to manage otherwise.

Providing the gift is smaller than the  nil rate band, then the nil rate band of the deceased is decreased by the value of the gift. 

Vianirone7

Thank you