Making large gift. How do I allow for IHT?

sclare

As of now, around £85k above? But I don't know the exact value of my present home.

bobster2

https://forums.moneysavingexpert.com/discussion/comment/81978099#Comment_81978099

If - including this property you're selling - your estate is worth £85k more than the total allowances available (NRBs + RNRBs) - then there would be £34K of IHT to pay (40% of £85k). Less in reality once funeral costs etc are taken into account.

So if you planned to give your sibling 50% of the property sale (£100k) why not just give them £66k instead - and the other £34k is then left to pay future IHT.

GDB2222

https://forums.moneysavingexpert.com/discussion/comment/81978222#Comment_81978222

That is fair if the OP will definitely die in the next 7 years. If she doesn’t, the £34k has been deducted unnecessarily.

It’s worth pointing out that a lady aged 70 is more likely to survive the 7 years than die during it. That’s allowing for some mild medical conditions.

GDB2222

https://forums.moneysavingexpert.com/discussion/comment/81978096#Comment_81978096

Life assurance is available for 70 year olds, and most people of that age have some medical issues. Have you actually had cover denied?

sclare

https://forums.moneysavingexpert.com/discussion/comment/81978222#Comment_81978222

Thank you, and sorry for the late response. For some reason I didn't see that more people had replied.

This is exactly what I've just done! I looked into the other options and had a brief chat with an advisor, and this felt like the simplest way to go. My sibling is very happy with the arrangement, so all good.