Postby maths » Tue May 30, 2017 3:29 pm
The transfer of 60% in aggregate is presumably made up of each parent transferring a 15% interest to each of you and your wife. These gifts are PETs.
Under the seven year rule no IHT liability arises (ie gifts become exempt) if both parents are alive immediately before the 7th anniversary of the date of the gift, namely, they need to be alive on 19 July 2017. Dying on 20th July 2017 would make the gift exempt.
This assumes that the beneficial interests were correctly transferred in 2010.
Although the gifts are PETs they may in principle give rise to a reservation of benefit on the part of each parent. Assuming parents do not benefit in any way after the gifts then no reservation arises (eg due to co-ownership splitting expenses between the four of you avoids a reservation; you may need advice in particular on this point).
The RNRB will only be in point when the surviving spouse leaves their 40% to the children. It may be preferable for each parent on their death to leave their 20% interest to the children directly, not to the other spouse.
Given the figures involved specific advice would seem appropriate.