Guiding through the gifting process

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Julie Hutchison clarifies the issues surrounding making gifts out of income

When clients are thinking about estate planning, any gift of capital is one which requires careful thought. Capital gifts are often one-off and quite substantial. This however contrasts with the role which income gifts can play for clients. Income gifts can be smaller, more regular and therefore more manageable. Many clients may however be unaware of the inheritance tax (IHT) exemption which exists for normal expenditure from income, and therefore miss an opportunity to make the most of the statutory gift rules which exist. An even stronger reason for financial advisers to be paying close...

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