Retiring but still a few uncertainties

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81993627#Comment_81993627

I think you are already well set up for using the gifts out of excess income regime with your logging of expenses. Yes they do say all of an UFPLS payment can count as income even the lump sum bit. I am not sure I would want to rely on that too much - if you took the lump sum some other way it would not be income. So it is a loophole and loopholes have a habit of getting closed if too many people use them.

It does depend on what you are thinking of giving away and when. Using the £3k per annum allowance might be a good idea and if a child needs a deposit for a house a large gift could make sense if you are likely to live 7 years. Both are much simpler to monitor than the excess income route.

DRS1

https://forums.moneysavingexpert.com/discussion/comment/81993631#Comment_81993631

Well ignoring her £20k ISA allowance and £50k premium bonds, if she has no other income she can get over £18k of savings interest and pay zero tax on it. At 4% that is £450k of savings. More than enough to cover the TFLS. Though you might not want to keep it all in cash savings unless you had found that house.