IHT Scotland help

[Fantapops]

My DGM would like to gift DW and I £30k

DGM is 78 and has some health concerns. I am likely to inherit further once she passes, not sure if that's relevant.

She is in Wales and I am in Scotland. How does this work in terms of inheritance tax?

Thank you.

You don’t pay the tax, it comes from your grandmothers estate when she dies. If the estate is under £325k there is no tax to pay. If part of the estate includes a house the threshold raises to £500k. If your grandmother lives for another 7 years there will be no tax to pay on the gift to you.

The bigger problem would be deprivation of assets as you mention health concerns. If your grandmother needs care the local authority will assume any sizeable cash gift is her deliberately trying to decrease her assets to avoid care fees. In this case you may be asked to pay it back.