Inheritance tax?

[Stvn]

My mother has named my brother and I as sole beneficiaries in her will. I have two children, my brother has none. I want to divide half my inheritance to my children (25K) each but will this incur a tax charge as it is coming from me as a parent?
Should my mother instead name them in her will to avoid any tax charges as I believe a parent can only gift their children 3K a year?
I hope this makes sense. Thank you.

I think you can do a deed of variation after your mother's death. I'm not sure of your brother would have to agree. We did this after my grandfather's death.

PP is right. You can formally vary your inheritance in a deed of variation within two years of your mother's death. If you die within seven years the gifts won't be counted back in your estate for IHT. Your brother doesn't have to agree.

I think if you live for 7 years+ after you have given the gift to your children there will be no tax to pay.

If you do decide on a Deed of Variation, it's as if the money never belonged to you at all and went straight to your children so no fear of IHT from your estate. All you're doing is 'varying the will'.