INHERITANCE TAX

[bob561941]

I want to give my son 50k to help him buy a bigger house,but realise i have to survive 7years before my estate is free from iht can i give 50k to my daughter in law as she is not a bloo relative ?

[EDDIE51]

it does not matter if the person you give the gift to is a relative or not the 7 year rule still applies.

[buildersmate]

This is a follow up question to this original question.
http://www.theanswerb.../Question1108073.html
Eddie is spot-on - you cannot just give your money away in an attempt to avoid IHT (except to the charity).
However if you or your family are concerned about the implications for them of you not surviving the full 7 years, you could consider buying a life insurance package for yourself that would pay out the IHT liability to your estate (or a nominated beneficiary) in the event that you did not survive the 7 years.

Also the scale of liability to IHT decreases for each complete year following the gift, as the 7 years progress - it isn't an all-or-nothing situation.

[dzug2]

<<Also the scale of liability to IHT decreases for each complete year following the gift, as the 7 years progress >>

Actually it doesn't - unless you give more than the IHT threshold away in any one year Taper relief is much misunderstood.

[buildersmate]

http://www.hmrc.gov.u...ue-estate/gifts.htm#4

Are we at cross-purposes, Dzug? All I was pointing out is that the inclusion of any Potentially Exempt Transfer (or not) tapers off, within an overall calculation for any IHT liability, as the 7 year period progresses following the gift.

[butaritari]

Don't go on the internet for financial advice. Go to and Independent Financial Advisor and probably pay a fee for advice as if you take free advice from them it will also be in their interest too.For instance they might recommend you a product that is good for them too. ie they get a fee from the company's product they sell to you. They're not independent unless you're paying them direct.