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 Clare Your Own Question
Clare, Family Solicitor
Category: Family Law
Satisfied Customers: 34890
Experience:  I have been a solicitor in High Street Practise since 1985 and have specialised in Family Law for the last 10 years
Type Your Family Law Question Here...
Clare is online now

Re Deed of Family Arrangement: One parent gives gifts exceeding

This answer was rated:

Re Deed of Family Arrangement: One parent gives gifts exceeding the IHT allowance to his children 4 years before his death. His wife is still alive. Does IHT have to be paid on the sum above £325,000 at that point, or 'is the clock still ticking' on the gifts for IHT purposes until the wife dies?
Thanks for using JustAnswer. My name is Claire, I will do whatever I can to answer your question.
Which parent actually gave the gifts and what has happened to the rest of his estate?
Customer: replied 5 years ago.

Hi Claire

The father gave the gifts to 3 children (£150K each) 4 years before his very recent death. There is other estate left to the children - about £300K + a house worth approx £250K. The wife has been left the husband's pension in the will but no property or money. The children, with the agreement of the mother, propose to have a Deed of Family Arrangement so that all of the estate passes to her initially and then she will gift this back to the 3 children - hopefully using her own IHT allowance. Are the original gifts of £150k to each of the children from the father seen as from him alone or are they considered to be from both parents - thereby not attracting IHT until the wife's death?



Did the money come from a joint account?
Customer: replied 5 years ago.


Then I am afraid it was clearly a gift from your father and falls to his IHT allowance