Loss to Estate - Permutations!


(Haroon) #1

Donor wishes to gift a property worth £350,000.

Option A

Day 1 - Gift 10% to daughter - value, £35,000, but loss to estate £66,500.
Day 2 - Gift of balance to RPT. Value passing into trust £283,500

Option B

Day 1 - Gift of 90% to RPT - value £315,000 but loss to estate value is £318,500.
Day 2 - Gift 10% to daughter - Value of gift £31,500.

Option C

Make both gifts on the same day - presumably the gift to the trust would therefore be value at £315,000 and £35,000 for the gift to the daughter.

Is the above correct and for ten yearly charge purposes, are both gifts made on the same day aggregated?

Haroon Rashid
I Will Solicitors Ltd