Hi.Your daughters and grandchildren will not have to pay tax on the proposed gifts. As the donor, you will have no tax to pay but see the next paragraph.You will be treated as having made potentially exempt transfers for Inheritance Tax purposes which will not be included in the valuation of your estate so long as you live for at least seven years after making the gifts. Should you die within seven years of making the gifts, then they will be included in your estate.Take a look here for information on Inheritance Tax and here for information on who pays it in different situations. In particular, in the second link, the section headed "When a beneficiary or a 'donee' has to pay Inheritance Tax" will be of interest.
It is possible to take out term assurance to cover a potential IHT liability though the nil-rate IHT band is first used against gifts made in the seven years before death and three years after a gift has been made, the potential IHT charge is reduced each year until the seven years have passed.I hope this helps but let me know if you have any further questions.
Thank you. However we will have nowhere near the amount in relation to IHT. Our savings and property are certainly not substantial.
sorry to trouble you again, but please would confirm the amount of money we can have before paying IHT. Just to make sure we are ok.
Sorry its ok now just got thee figure up(see comment below)