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Probate and paying for a grandchild's education

2 replies

GuppytheCat · 10/05/2024 20:53

We're in the early stages of working out my deceased MiL's estate. She very kindly paid my oldest child's accommodation fees at university, and some of that time falls within seven years of her death. I've read the brief guides to gift giving, but I can't work out whether this falls under 'regular payments' or needs to be counted as a sequence of gifts. The examples I've seen are for school fees rather than accommodation.

She had an excellent pension and wasn't dipping into savings to do this. Not sure if that makes a difference?

If anyone could point me at where to look or who to ask, that would be much appreciated.

Actually finding the records of her paying it will be the next challenge...

OP posts:
Harassedevictee · 10/05/2024 22:38

This may help https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14242

Evidence of monthly/annual income is essentially what you would need for self assessment e.g. P60’s, dividend statements, interest statements etc.

Expenditure - monthly bank statements highlighting personal expenditure and payments to DC. It maybe you do this in reverse asking DC to go through their statements and highlight payments in as they should have a descriptor.

IHTM14242 - Lifetime transfers: conditions for normal out of income exemption: pattern of gifts - HMRC internal manual - GOV.UK

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14242

GuppytheCat · 10/05/2024 23:28

Oh, thank you -- that looks like a really good place to start.

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