A recent survey has shown that more and more people are trying to pass on assets to their children while they are still alive, thus reducing the number of possible Inheritance Tax Estate interested in their end. However, there are a number of issues that need to be taken into account if you intend to go down this route.
The inheritance tax threshold has added value of all the assets, not just your own property. If the indication is that the worth of estate will be more than that at the time of your death, the specialist judges can help you to reduce your liability.
Parents naturally feel safe to make this gift to their children for several years and it is a way of lowering the estate’s final value. One thing you do need to do is to consider the age of the child and therefore their ability to handle money. To that end, the pre-legacy gift can be given on the same terms as given after death. You can specify that the money must be spent in certain ways, such as paying off the mortgage or debt or use the money to pay for their education.
If you feel that you can realistically manage your life without money, this could be a solution that will help you both in the short and long term. It is very important that you remember to keep your Will up to date, reflecting the gifts you have given.