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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6653
Experience:  FCCA FCMA CGMA ACIS
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If an elderly res, Sorry, mistyped there If an elderly

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If an elderly res
JA: Have you talked to a tax professional about this?
Customer: Sorry, mistyped there If an elderly relative has an estate less than £325,000 if they gift money to their children, would that gift be liable to 40% inheritance tax?
JA: Anything else you want the Accountant to know before I connect you?
Customer: No

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Are you taking about cash gifts whilst still alive or by will after decease?

Customer: replied 11 days ago.
Cash gifts whilst still alive.
Customer: replied 11 days ago.
No I don't want to have to pay £43 I thought paying £5 would entitle me to a response to one question, I feel this is a rip off.

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A cash gift creates a Potentially Exempt Transfer (PET) in the donor's Inheritance Tax (IHT) affairs. PETs run off at a taper over 7 years and in the event of the donor's decease within this time period are added back to their estate and exposed to IHT. PETs are the first to suffer IHT and if the estate is insufficient to meet the tax on the PET then the liability cascades down to the beneficiary for immediate payment. As you have realised IHT does not kick in until assets on death exceed 325K.

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