But the ice cream raffle basket law in this area is quite complex.
It depends on the type of trust you choose to set up to hold the asset.
They will be deducted from your inheritance tax allowance, so there would be less tax-free money to distribute after your death.
Wedding gifts, in this case, if the gift is to be effective for inheritance tax purposes, it has to be made before, not after, the wedding and the wedding has to happen, and it has to be: given to a child and is worth 5,000.If you give away gifts worth more than 325,000 in the seven years before your death, the recipients will be liable for.It is possible to gift amounts in excess of the tax free exemptions, as you are looking.The potential difficulty is with inheritance tax when you die.Visit for more information about PETs?The 7 year rule, if theres Inheritance Tax to pay, its charged at 40 on gifts given in the 3 years before you die.How much can I give to charity tax-free?Although not to anyone who has already received a gift of your whole 3,000 annual exemption.Otherwise, Inheritance Tax is very likely to due on these gifts when you die.Find out more in, a guide to Inheritance Tax, how much can I give to my children and family tax-free?Its a good way of cutting your Inheritance Tax.But estate and tax planning is a complex area.Call the, inheritance Tax and probate helpline if youre not sure.For example, if a husband dies and his estate was under 325,000, his wife can take his allowance and add it to her own tax-free allowance.If youre not sure what to do when making financial decisions then you should consult a financial adviser, who will likely charge for any advice that is given.
And if you continue to live more than 7 years after youve made the gift, it becomes fully exempt from Inheritance Tax.
They can also pass on their unused tax-free allowance to their spouse.
However, if you die within seven years of making the gifts, then they could form part of your estate.
Patrick Connolly is a certified financial planner at Chase de Vere.