Gift - would I have to pay inheritance tax?

[Adulbria]

My elderly mother in her 90's would like to gift me around £10k. Would this be liable for inheritance tax should she not survive 7 years? She has @ £400k and I don't want to get into difficulty if that's the case, I have one brother who is very well set up and does need anything at the moment.

Martin Lewis made a few weeks ago, which is very clear.

Do you know the total value of the estate?

and whether your father left his estate to her/whether the £400,000 includes a house that she plans to leave to you on her death

Key questions are the ones in @Rainydayinlondon ’s post. My DM’s estate is over £750k but no IHT due.

Should there be IHT due on the amount (this depends on certain other factors, as rainyday has asked above) it is payable by the estate, not the individual receiving the money.

Whether there will be IHT on that 10k depends on how big your DM estate is in total, whether she was married to your Dad and what property there is.

If your DM does die within 7 years and IHT is due on her estate then you will not be personally liable for anything. It is deducted from her estate before any remainder is paid out to the beneficiaries.

It is up to your DM if she wants to update her will/records to reduce your share by 10k to keep it fair (I assume split between you and brother)

She might like to lend the money and convert it to a gift in chunks of £3000 each tac year. Then, I believe, it would not attract inheritance tax (or reduce the nil band).

But if she dies while the loan is outstanding it will fall into the estate. But the loan will be cleared in about two years, rather than having to wait seven years.