Unaware of the Rule: Thousands of Families Forced to Pay Inheritance Tax
Gifts to Grandchildren and Children Come Back to Haunt Families with Inheritance Tax Bills
According to telegraph, Many families are surprised to find out they have to pay inheritance tax after a loved one passes away. This is happening because they gave gifts to their children or grandchildren, but they didn’t know about a special rule. The rule says that if you give something away within seven years of your death, it’s still considered part of your estate and might be taxed.
Official numbers, 1,300 families had to pay inheritance tax on gifts they received from a loved one in 2020-21. This is a big increase from 2011-12, when 590 families paid inheritance tax. People are giving away their money to help their children buy a house or to make sure they don’t have to pay too much inheritance tax.
Beware the 7-Year Curse: Thousands of Families Unaware of Inheritance Tax Trap (PHOTO: GOOGLE)
Experts Warn of Inheritance Tax Crisis: Families Struggling to Pay Bills
Experts are worried because some families might not have enough money to pay the inheritance tax bill. Ian Dyall from Evelyn Partners said: “What will happen to families who gave away their money but didn’t live long enough for the estate to benefit?” He thinks that more families are giving away their wealth because they want to help their children or grandchildren, but they didn’t realize it would cause problems with inheritance tax.
