Crosswords4 mins ago
Money Left To You.
If you are left money in a will and you decide to give it to somebody else are you liable for tax if you are in your 80's?
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Which tax are you referring to?
There is no such thing as 'gift tax'; you're free to give away as much as you like without any tax being payable.
If you die within 7 years of making a gift though, when it comes to assessing the value of your estate, any gift made during that period will still be included (either in part or in whole, depending upon when it was made) for the purposes of calculating any Inheritance Tax due.
However there's no Inheritance Tax to be paid anyway if the value of your estate is less than £325,000 (or £650,000 if your partner pre-deceased you and left everything to you) at the time of your death.
There is no such thing as 'gift tax'; you're free to give away as much as you like without any tax being payable.
If you die within 7 years of making a gift though, when it comes to assessing the value of your estate, any gift made during that period will still be included (either in part or in whole, depending upon when it was made) for the purposes of calculating any Inheritance Tax due.
However there's no Inheritance Tax to be paid anyway if the value of your estate is less than £325,000 (or £650,000 if your partner pre-deceased you and left everything to you) at the time of your death.
Strikes me as a straightforward question
Suppose an eighty year old worth £400k ( above the IHT boundary ) is left £10 000. and there has been IHT paid on this estate ( 40% about £322k )
and then the 80 y o passes on the money to some lucky fellow like qk. Is it a PET for IHT purposes - -- answer yes - unless the 80 y o lives until 87 when it passes out of the estate for IHT purposes
and in this case the donee is responsible for the tax and not estate innit ? I think so
and so what is the answer - get the old boy to leave it direct to the donee
OR if it is after the death then a deed of variation of the will
Suppose an eighty year old worth £400k ( above the IHT boundary ) is left £10 000. and there has been IHT paid on this estate ( 40% about £322k )
and then the 80 y o passes on the money to some lucky fellow like qk. Is it a PET for IHT purposes - -- answer yes - unless the 80 y o lives until 87 when it passes out of the estate for IHT purposes
and in this case the donee is responsible for the tax and not estate innit ? I think so
and so what is the answer - get the old boy to leave it direct to the donee
OR if it is after the death then a deed of variation of the will
ask a different question and you get a different answer !
The £80k will / would be tax free ( IHT) because the estate pays the tax usually ( different in Napleonic Code countries where the lucky recipient is liable for the tax and it is commonplace for them to say ah non merci - purely on the grounds they cant afford to pay the tax that comes with the bequest )
If he is on means tested benefits, then yes that would affect them if savings are assessed ( yes this would be savings )
the benefit he is likely to be on is this
https:/
and yes if you read it - he would lose it - for the time he takes to spend £80k
The £80k will / would be tax free ( IHT) because the estate pays the tax usually ( different in Napleonic Code countries where the lucky recipient is liable for the tax and it is commonplace for them to say ah non merci - purely on the grounds they cant afford to pay the tax that comes with the bequest )
If he is on means tested benefits, then yes that would affect them if savings are assessed ( yes this would be savings )
the benefit he is likely to be on is this
https:/
and yes if you read it - he would lose it - for the time he takes to spend £80k
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