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Where Taxpayers and Advisers Meet

Gift / IHT question

Libby Jane
Posts:5
Joined:Sat Feb 25, 2012 11:56 am
Gift / IHT question

Postby Libby Jane » Sat Nov 13, 2021 3:28 pm

Hello, my parents are in their early 90's. Their joint estate is currently worth in the region of £1,100,000, including the house which is worth approximately £750,000. They wish to gift me and my brother £50,000 each from their joint bank account. The rest of their estate, in their wills, will be left to each other. I realise the gift will come under PET rules but could someone please advise as to when this would kick in? Does it come into effect on the first death or will it not apply until both parents have passed? Many thanks. :)

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Gift / IHT question

Postby pawncob » Sat Nov 13, 2021 8:36 pm

They act a individuals. If one dies their gift falls under PET rules.
With a pinch of salt take what I say, but don't exceed your RDA

Libby Jane
Posts:5
Joined:Sat Feb 25, 2012 11:56 am

Re: Gift / IHT question

Postby Libby Jane » Sun Nov 14, 2021 1:43 pm

Thanks very much pawncob. Am I right in thinking that no tax will be due on the first death as it will be within their nil band allowance, and that the unused allowance will be transferred to the surviving spouse?

pawncob
Posts:4877
Joined:Wed Aug 06, 2008 4:06 pm
Location:West Sussex

Re: Gift / IHT question

Postby pawncob » Sun Nov 14, 2021 8:22 pm

Yes.
With a pinch of salt take what I say, but don't exceed your RDA

Libby Jane
Posts:5
Joined:Sat Feb 25, 2012 11:56 am

Re: Gift / IHT question

Postby Libby Jane » Mon Nov 15, 2021 5:31 pm

Thank you, much appreciated.


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