Sharing an inheritance

[Kiftsgate]

My DH wants to give all five of our children £10,000 each from an inheritance he is due from his mother's estate after probate is sorted. We know that if he doesn't survive 7 years after giving the gifts our children will be potentially liable for inheritance tax on these gifts. 3 out of the 5 of our children really need this money and are not likely to be in a position to pay inheritance tax if my DH dies before the 7 years are up. The other 2 are very financially stable and not likely to find it a problem. Is there anything we can do to make sure none of them are put into financial difficulties if my DH does die early? Im not looking for any way to avoid them paying any tax due, just wondering if there is anything we can do to make money available to help them pay it if the worst happens?

They’ll be 10,000 better off than they are today. Can’t they just put some of the money aside to cover potential tax liability and fingers crossed it won’t ever be needed.

Is DH likely to die in the next 7 years? If not, then don’t worry - you can’t plan for every eventuality. If he’s got life assurance in place then that could be used to help out should the worst happen.

They do not pay the inheritance tax. If he dies within seven years, the amount of the gifts (less annual exemptions) will be added to the value of the estate and the tax is paid from there. There will be no tax bill for any of the children directly.

If he is a beneficiary of the will he can do a deed of variation where he changes who gets the money. So it comes straight from his mother's estate and therefore will not ever be classed as his money.

Thank you all very much indeed - that's all really helpful!