Inheritance tax expert: Always keep records of gifts

An inheritance tax expert has advised Britons to keep records when making sizeable gifts, which could help ensure estate administration is not burdened by excessive state levies.

One Daily Mirror reader is considering helping her son pay off his mortgage, a move that could reduce her exposure to inheritance tax if the transfer is made at least seven years before her death, Tricia Phillips advises.

Free will-writing advice may help individuals identify ways in which they can help loved ones sooner rather than later, with trust wills sometimes used for this reason.

Ms Phillips points out the present "will be classed as a potentially exempt transfer" and "deemed outside your estate" if the giver lives another seven years, but recommends keeping a record of when it was made for inheritance tax purposes.

A recent report by Heartwood Wealth Management revealed many middle class estates will be subject to death duties, with the Financial Times revealing this is because the average inheritance of £335,285 stands above the £300,000 liability threshold.

Published by Phil Hammond