As Christmas approaches, most of those celebrating will have finished their shopping and have all their presents wrapped and ready under the tree by now. However, writes Libby Holding, clients may not be aware of the ways in which additional gifts at this time of year and, in some cases, all year round, can help with their estate planning for inheritance tax (IHT)
Many people are aware of the general rule that you must survive for seven years after bestowing a financial gift in order for it to be exempt from IHT. Generally, after seven years the value of the gift is then outside your estate for IHT purposes and would not be included in calculations for IHT on your death. There are, however, some exemptions to this rule, so if you have a client who wishes to give money to a relative this Christmas - or any other time of year for that matter - it's important to be aware of how this can help from an inheritance tax planning perspective. Gifts to s...
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