GIFTS TO CHILDREN AND GRANDCHILDREN

[bob561941]

I want to give my son £50,000 to help him move to a bigger house as he now has three children. Is there any advantage in splitting the 50K into five equal amounts of 10k each to Son,his wife,and 10k each paid into each childs account which is controlled by mother ?. I know that I will have to survive 7 years to avoid inheritance tax on my estate if I give the whole lot to me son.

[buildersmate]

No, there's no advantage.
These gifts are known as Potentially Exempt Transfers by HMRC and as per usual there are rules.
You can give away up to £3k per annum without it becoming a PET, plus as many small gifts of up to £250 to different people. In addition you can give up to £5k for a wedding gift.
All of your amounts exceed the rules so £47k of your gift would be counted as a PET.
Best to stay alive a fair bit longer.