IHT payable on child isas?

[Tinkobell]

We lost a grandparent very suddenly in December. The grandparent had given the full annual isa Allowance each year to our daughter, paid by them directly into the Halifax junior isa.
We are trying to figure out the IHT payable on the estate, DH is executor and sadly it was his dad who died. We don't know if tax has to be paid by us on the daughters ISA for the last 7 years? Any clues or info anyone? Much appreciated!

It depends on several things like other gifts made, size of the estate and whether it all passes to his spouse BUT:
If the sum was paid regularly and out of your FIL's income (not capital) then it would arguably fall into one of the exemptions. You should take specific advice.

I don't mind saying...it was £4K per annum. The estate is valued below (well below) the £325k tax threshold as there's no House to dispose of.

If the estate is below the inheritance tax threshold then there will be no tax to pay. (Even if it was above the threshold then the estate would pay any tax due, not the recipient of the gift.)

In which case tinkobell no, there will be no tax to pay.

I'd check the HMRC website or ring the information line tbh. The estate doesn't meet the threshhold, and if there is any income tax to pay it will be on a sliding scale anyway. The annual allowance for gifts is £3K, you can give wedding and birthday gifts on top of that, so that £4K could well be the annual allowance and her birthday gift combined.

I would get some advice as you may not need to pay tax on it, normally it would come out of the estate anyway.

Sorry for your loss, OP, hope your DH is doing OK with the estate - my DH has been an executor on a number of occasions and it can be way more work than you think!