How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask TaxRobin Your Own Question
TaxRobin
TaxRobin, Tax Consultant
Category: Tax
Satisfied Customers: 15986
Experience:  International tax
14155347
Type Your Tax Question Here...
TaxRobin is online now

I am looking for some help regarding gifting money to your

Resolved Question:

I am looking for some help regarding gifting money to your children. My mother is below the inheritance tax threshold in uk. She wishes to gift 50,000 of her savings to my sister. Can she do this without any problem. Does she have to survive seven years. many thanks.
Submitted: 3 years ago.
Category: Tax
Expert:  TaxRobin replied 3 years ago.
Hello and thank you for allowing me to assist you.
Any gifts you make to individuals will be exempt from Inheritance Tax as long as you live for 7 years after making the gift. These sorts of gifts are known as 'Potentially Exempt Transfers' (PETs).
If you die within 7 years and the total value of gifts you made is less than the Inheritance Tax threshold (£325,000 in 2014 to 15 tax year), then the value of the gifts is added to your estate and any tax due is paid out of the estate.
Your mother can make the gift without problems but yes, the 7 years apply.
Expert:  TaxRobin replied 3 years ago.
CustomerLast Viewed on 16/09/2014 at 06:08
Rating lets Just Answer know you were assisted and credits me for the time.
You have to actively click on a rating and click submit. Smiley Faces or Stars.
TaxRobin and other Tax Specialists are ready to help you