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Hello, welcome to the website. My name isXXXXX can assist you with this.
Have any gifts been made by either rod them in the 7 years preceding their death?
Have there been any transfers by them to trusts etc?
Gifts have been made within the 7 years.
You need to work out the value of those gifts, and add them up, and these would be added up for the purposes of counting towards the £325,000. However, people have annual limits of £3,000, which can be carried forward if not used for the following year.
So small gifts can be exempt for the purposes of counting towards the IHT limit.
Thank you for this information, so simply is the answer to my question "yes it is just £325,000"
Per person, yes, that's right.
You need to appreciate though that property can pass from one person to another an be outside of that limit too, if you have joint tenancies, in respect of which property passes automatically by law.
Is there anything else you would like me to answer for you?
You say per person, so is my fathers allowance still valid? as everything was passed to my mother when he died. or is it now just £325,000 for my mother?
It would be just £325k for her now. His estate presumably took the benefit of the spousal exemption, and if everything was left to her, then his estate paid no IHT. However, now that she has passed, she only has the benefit of the £325k exemption.
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Thank you for this.... this would concur with what some friends have told me, as my fathers estate did pass on to my mother, and no IHT was paid. So therefore I assume this means that we now have a total of £650k IHT allowance on their total estate.