Tax on gifts

[thegreenestbear]

Hi - my mum passed away earlier this year and left everything to me. Can I give my DS and DD 20k each or do I need to pay tax?

IHT has been paid in full. TIA x

No tax yet, there is an annual allowance, although should you die within 7 years a proportion may be treated as part of your estate.

www.gov.uk/inheritance-tax/gifts

Consider a deed of variation if you are still within 6 months.

I agree with the deed of variation. It's as if your mother had left the money directly to her grandchildren.

We have done it twice and it's very simple.

You can gift as much as you like, no limit. People get confused with the fact that if you die then the gift counts against your IGT Nil Rate Band. Only gifts above that level taper over 7 years.

£3k per year is exempt from the calculation.