Grandparents warned of ‘important thing to consider’ to lower IHT bill

The figures highlight that the rise in the cost of living is affecting millions of people. Britons are warned of the gifting rules so they are not surprised by any extra bills.

Jonathon Jay, Partner with DSW Wealth Planning explained the important things to consider before people can give their money away.

He said: “Before giving money away, it is important to consider how much you can afford to give without affecting your standard of living, and whether you need some control over what is given. You can give to children or grandchildren directly, but if you would like to remove more from your estate and control how and when it is distributed, a trust arrangement may be more appropriate.

“Please note, gifts are typically subject to Inheritance Tax if you do not survive seven years after they are made. Some gifts are classed as exempt transfers and others are potentially exempt.

“Trusts and gifting methods for Inheritance Tax purposes are complex in nature and you should seek professional advice to understand how they could work for you.”