IHT Liability on death of parent 1 re gifts made to children

anjo56

My husband and I have jointly gifted £350k jointly to our 2 adult children since 2019, largely for house deposit and capital paydowns.  Our wills leave our estates to each other. When the first parent dies, is there a IHT liability for our children out of the first estate?  Does probate need to be done for the first estate? Thanks.

Keep_pedalling

There will be no IHT liability on the first death as you have each gifted £175k so well below you NRB. If either of you dies before the 7 years are up all that will happen is that is the amount of transferable NRB to the surviving spouses estate will be reduced.

Whether probate will be required on the first death will depend on what sole assets the first to die owned. Large cash deposits or equities my not be released to the estate without probate, but it won’t be needed to cover the gifts.

anjo56

Thanks for this. Much appreciated and very clear.