Monthly gift for grandchildren's education- IHT

thriftytwosome

I give a monthly gift to my son's family towards the children's education, out of my income.

As my Estate would be liable to IHT would this be counted as a gift each month from excess income or is it better to make an annual gift out of income?

I already use the allowed IHT allowances each year.  

tacpot12

It would be better to make these payments as regular payments out of excess income. You already meet the requirement for the payments to be regular, but you  need to be sure that you have excess income. That is income that is over and above what you need to pay your living expenses. You need to consider whether your financial records clearly show that you have excess income. If it is borderline whether you have income that is really in excess of your needs, you might need to increase your record keeping or reduce the gifts to what really is in excess. 

thriftytwosome

Thank you tacpot12, accurate record keeping seems to be the important thing, which I think I have covered. 

I feel reassured.