Gifts After Will

[taichiperson]

Hi all - my mother passed away very recently, and as far as I know I will be her sole beneficiary, being an only child. She and Dad made joint wills, each leaving everything to the other, and the survivor leaving everything to me. I know she was wanting recently to leave something specifically to my husband, which I will honour. I'd also like to give something to our two sons. Can anyone tell me please how much I can gift to them without having to pay tax?

[woofgang]

As much as you like. The hook is that if you die within 7 years, what you gave them becomes taxable on a sliding scale dropping down the longer you live.

[woofgang]

sorry should have added the sliding scale goes down over 7 years to zero at the end of the seventh year.

[Buenchico]

As Woofgang indicates, there's no tax on gifts (either for the giver or the recipient).

If you die within 7 years of making a gift though, that gift (in whole or in part) can still form part of the value of your estate when calculating how much Inheritance Tax is due.

However:
(a) there won't be any Inheritance Tax to pay anyway if your estate is valued at less than £325,000 ; and
(b) if your husband was to pre-decease you, leaving everything to you, you'd also inherit his tax-free allowance for Inheritance Tax, meaning that there would be nothing to pay unless the value of your estate exceeded £650,000.

[zebo]

I believe that there is an amount, £3000 I think, you can give to your child every year with no tax implication, the 7 year rule is for amounts in excess of this.

[zebo]

https://www.money.co.uk/guides/gifting-money-to-your-children-faqs.htm

This might help.

[Buenchico]

Correct, Zebo:
https://www.gov.uk/inheritance-tax/gifts

[Tilly2]

I think that when the money is yours, via probate, you can do with it what you like.

[taichiperson]

Thanks all, some useful info there.

[Peter Pedant]

SOME ....... SOME useful info ?

read it again - it is all there ( and free!)

[Barmaid]

You can do a Deed of Variation to your mother's Will to leave your husband and sons bequests. If you do this within 2 years of death then the gifts are written back into the Will as if the testatrix made them. So there's none of this surviving for 7 years mullarky.

[shoota]

Malarkey

[Peter Pedant]

Hi BM
depends on the amount really dunnit ?

no point in doing a deed if only a few thou are involved
it depends on the cost of a deed of course

[taichiperson]

I'm sorry if I came across as ungrateful Peter - Mum's death was sudden and unexpected and I'm just coming to terms with it.

Thankyou Barmaid, I'm sure I can go over that with Mum's solicitor.

I'm very grateful for your answers - I know information is easy to get nowadays, but it's good to hear folk's personal experience and recommendations. This site is invaluable.

[Peter Pedant]

dont worry tai chi
just concentrate on the matter in hand which is much more important and will take up all your time and energy