Cash gift from relative

[Wmikewoods]

Hi, my elderly grandmother wants to gift me a amount of money. Her estate is worth way under the £325K limit for inheritance tax, what considerations should I make before accepting?

Is it an income and therefore taxable or is it classed as unearned income and therefore also taxable?

I understand that if she were to die within the next 7 years that the money would count towards her estate but that is not a consideration as the estate will be much less than half of the £325K last limit.

Thanks for any advice

[DSW TaxResolution]

As long as the amount remains under the threshold there is nothing to pay. Only IHT would be in question and as you correctly state, the threshold is £325k (and the 7 year rule).
So all is fine in your circumstance*.

*Assuming this is purely a gift and not for services/goods of any kinds.