Lifetime donation to charity

lake888

If I donate, say £10000 to a charity, I understand that it will not be counted towards inheritance tax calculation and not affected by the 7 years rule.  Does the amount need to be included in IHT400 at all?

Keep_pedalling

If an IHT return is actually required then yes it needs to go on IHT403. 

lake888

Keep_pedalling said:

If an IHT return is actually required then yes it needs to go on IHT403. 

Sorry some more question.  How about if the donation was made more than 7 years before death.  Does it need to be recorded?  I am struggling to decide which box I should tick.

Marcon

lake888 said:

If I donate, say £10000 to a charity, I understand that it will not be counted towards inheritance tax calculation and not affected by the 7 years rule.  Does the amount need to be included in IHT400 at all?

lake888 said:

Keep_pedalling said:

If an IHT return is actually required then yes it needs to go on IHT403. 

Sorry some more question.  How about if the donation was made more than 7 years before death.  Does it need to be recorded?  I am struggling to decide which box I should tick.

Why are you filling in IHT forms if you're still alive...? They would need to be handled by your executors after your death (although obviously good record keeping on your part in respect of gifts and donations would be immensely helpful).

Keep_pedalling

lake888 said:

Keep_pedalling said:

If an IHT return is actually required then yes it needs to go on IHT403. 

Sorry some more question.  How about if the donation was made more than 7 years before death.  Does it need to be recorded?  I am struggling to decide which box I should tick.

No it would not need to be declared. Likewise confused, are you an executor of someone else’s estate or are you looking for guidance to help your executor when the time comes?

lake888

Yes I just want to keep some records for the executor.  I know the executor might need to pay inheritance tax on my estate when I pass away, I'm thinking of making use of the annual exemption of £3000 for gifting and donate money to charity on a yearly basis.  I hope that will keep the inheritance tax to an amount that the executor can manage and use Direct Payment Scheme as well.

Keep_pedalling

Just keep a record of all you gifting for the past 7 years and make sure you keep where your executor can find it.

Is your estate actually in IHT terretory?

lake888

Keep_pedalling said:

Just keep a record of all you gifting for the past 7 years and make sure you keep where your executor can find it.

Is your estate actually in IHT terretory?

Yes very likely inheritance tax needs to be paid.  I heard some of the ways to reduceIHT liabilities like business property relief, putting life insurance policy in trust etc. but I'm not fully convinced that they are right for me.  So I'm just want to make things simple.