At Glaisyers we are often asked whether it is possible to give your home or investments to family to reduce your Inheritance tax bill. It is possible, but you have to make sure it is the right decision for you, and there could be unexpected consequences. Our specialist solicitors will get to know you and your circumstances to help you decide the best way forward.
There are special tax rules which might cause problems if you die within 7 years of giving assets away. If you carry on living in the house you have given away it might still count towards your inheritance tax bill unless you pay rent to the person you have given it to. Our Wills and estate planning specialists can help you to understand the risks involved in making gifts.
You can transfer your home to your children or other family members. If you sign the legal ownership away to another person, you could be exposed to extra risks and the house might still be taxed as if you owned it. If your children own your home and go bankrupt or divorce their creditors or former spouse might claim the value of your home.
If you make gifts of money to individuals there will be no inheritance tax to pay unless you die within the 7 years following the gift. Gifts up to £3,000 per year don’t count for inheritance tax and there are other exemptions if you make gifts out of income that you don’t need, or small gifts worth less than £250. You can also make gifts to charity without affecting your inheritance tax allowance.
With a practical approach to making gifts our friendly Wills specialists can help you decide whether lifetime gifts are right for you.
Call our Power of Attorney team on 0161 832 4666, who will be happy to talk things through with you and give free, no obligation advice or complete the online enquiry form and one of our team will get in touch for a no obligation chat.
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