Inheritance tax advice

The current inheritance tax threshold is £325,000. There is usually no Inheritance Tax to pay if your estate is valued below this amount or if you leave everything above that amount to a spouse, civil partner, charity or community amateur sports club.

Inheritance tax may still be payable on gifts you have given less than seven years before you die. If a gift does attract IHT, the amount due tapers depending on the length of time it was gifted before you died.

There are allowances and exemptions to the seven-year rule, including wedding gifts and others. We can advise you on what you are able to give away tax free during your lifetime, and what counts as a gift for the seven-year rule.

There are significant things to take into consideration when thinking about gifting a property rather than leaving it as part of your estate to be inherited.

Should you have gifted your property then required care, a local authority may still take the value of the property into consideration when working out your contribution to the cost of care. The seven-year rule can also apply, and the value of the property my fall back into your estate if you die within that period.

If you gift a property to your family but continue to live in it, this is called a gift with a reservation of benefit and again would be considered to be part of your estate. When considering gifting a property, it is always wise to take specialist advice.