Inheritance Tax Gifts and 7 year rule 2nd Death?

Stepps131

My wife and I have shared bank accounts. We have mirror wills leaving everything to each other. We have gifted money to our adult children. Hopefully we will both survive seven years making this question irrelevant.  However, is there a way these gifts can be considered as joint, so that if one of us dies within the 7 seven years but the other survives all of the gift is safeguarded? Even if it is too late for the gifts we have just made, any advice might be helpful for future gifts.
Thanks in advance.

UnsureAboutthis

I asked a very similar question but mine was especially related to joint current accounts and savings accounts.

https://forums.moneysavingexpert.com/discussion/comment/81562352#Comment_81562352

Notepad_Phil

Stepps131 said:

My wife and I have shared bank accounts. We have mirror wills leaving everything to each other. We have gifted money to our adult children. Hopefully we will both survive seven years making this question irrelevant.  However, is there a way these gifts can be considered as joint, so that if one of us dies within the 7 seven years but the other survives all of the gift is safeguarded? Even if it is too late for the gifts we have just made, any advice might be helpful for future gifts.
Thanks in advance.

If you gift from a shared joint account then it is a joint gift, but that means 50% comes from you and 50% comes from your wife and so if one of you dies within the 7 years then 50% of the gift falls into iht (and 100% if you both die) - there's no way that you can gift from two people and safeguard it from being affected by one of the people dying apart from paying out for insurance to cover that outcome.

Keep_pedalling

Assuming these are joint 50/50 gifts then no, if one of you dies then 50% of the gift comes off the NRB reducing the amount transferable NRB for the surviving spouse the other 50% remains a PET until the 7 years are up. 

If one spouse has a limited life expectancy then it is probable best for the other to make any non exempt gifts, otherwise joint gifts are the better option.