Regular gifts form income

[mill]

A spouse in her own name has a number of buy to let properties, the income from which is declared. After tax the residue accumulates in her personal account

Based on the concession that regular gifts from income may be made without incurring a future possible IHT liability, the spouse plans to transfer the tax paid surplus from the rental income on a regular basis to her grandchildren to cover university expenses.

A condition for this IHT concession is that regular gifts from income must not result in a reduction of the standard of living of the donor. The spouse’s rental income makes no contribution to her family’s household expenses, which are amply covered by her husband’s income, so her standard of living will be unchanged

Does her contemplated course of action comply fully with the terms of the regular gift IHT concession?

[pawncob]

A text book case. No problems, but make sure there is a statement of gift.