Easter is later this year, 21st April 2019, which means you can start thinking early about your Easter Gifts. Chocolate eggs may seem the obvious choice but perhaps you are considering money instead. If you are, then you should consider what that means for you and your estate.
Making significant gifts may have consequences if you need to receive care, as this may be deemed as a deprivation of assets in order to receive local authority funding. Gifts of this nature are frowned upon.
Making gifts to reduce the size of your estate to avoid Inheritance Tax may also be challenged, if you do not adhere to the rules.
However, for Inheritance Tax purposes, did you know:-
- You can make gifts between spouse / civil partners.
- You can give away £3,000 in each tax year.
- You can give away £1,000 as a wedding / civil ceremony gift per person (£2500 for a grandchild or great grandchild, £5000 for a child).
- You can give away £250 per person provided you have not made any previous gifts to them in the same tax year.
- You can make gifts from surplus income, leaving enough money for you to maintain your standard of living.
- Payments can be made to assist another person’s living costs, such as an elderly relative or a minor.
- You can make gifts to charities.
- You can make a gift known as a Potentially Exempt Transfer (PET). If you survive 7 years from the date of the gift, the value of the gift will not be taken into consideration when calculating the value of your estate.
Have an enchanting Easter from everyone at Linder Myers.Find out more about our Trusts & Estates department