Family & Relationships1 min ago
Inheritance tax?
8 Answers
My grandmother has just sold her house for �290,000. what can we do with the money to avoid paying inheritance tax on it if she dies and we inherit the money?
Answers
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Very little, apart from getting her to spend it, particularly if your grandfather is no longer alive.
She can give limited amounts of it to you now without paying IHT and larger amounts similarly if she survives 7 years from the date of the gift.
The house itself won't make her estate liable for IHT - the threshold is going up to �300K in April - but she presumably has other assets that will take her over this.
She can give limited amounts of it to you now without paying IHT and larger amounts similarly if she survives 7 years from the date of the gift.
The house itself won't make her estate liable for IHT - the threshold is going up to �300K in April - but she presumably has other assets that will take her over this.
Who do u bank with? If you go into your bank Im sure they will have a financial planning manager/advisor who can (if they are any good) put some things in place and or help you. your grandmther does not need to bank with them. where i work we are allways on the look out for case like this as we can really help.
She has moved into sheltered housing and pays rent but her pension nearly covers the rent so her savings wont go down much.
So if when she dies she has under 300k then there wont be tax on it?
am i right in thinking she can gift 3000 per year? but then if she dies within 7 years we'd be taxed on the 3000 a year we'd received?
We're only thinking about this now as we would be loathed to let the tax man get this money as we're quite poor.
So if when she dies she has under 300k then there wont be tax on it?
am i right in thinking she can gift 3000 per year? but then if she dies within 7 years we'd be taxed on the 3000 a year we'd received?
We're only thinking about this now as we would be loathed to let the tax man get this money as we're quite poor.
If she has less than �300K (or the limit at the date of death - it does go up each year) there is no IHT
She can give a single gift of �3000 each year (or �6K every 2 years) without strings, plus small gifts out of income for birthdays, Christmas, etc.
Gifts over the �3K limit fall under the 7 year rule.
She will pay income tax on the interest from the sale proceeds (assuming it's in a bank, etc) while she is alive. When you get it it will no longer be interest, but capital, so it will form part of the total.
She can give a single gift of �3000 each year (or �6K every 2 years) without strings, plus small gifts out of income for birthdays, Christmas, etc.
Gifts over the �3K limit fall under the 7 year rule.
She will pay income tax on the interest from the sale proceeds (assuming it's in a bank, etc) while she is alive. When you get it it will no longer be interest, but capital, so it will form part of the total.
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