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Why not make a gift to your loved ones this Valentine’s Day?

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Why not make a gift to your loved ones this Valentine’s Day?

Love is in the air; wedding season is upon us and it’s a brand-new decade.

This Valentine’s Day could be the perfect time to consider giving lifetime gifts to your loved ones.

What is a lifetime gift?

An alternative to flowers and chocolates, you can make a gift of money, property, jewellery or artwork in your lifetime, rather than as part of your estate.

Perhaps you want to help a couple buy their first ‘love nest’ together or contribute towards a romantic holiday.

What are the advantages of lifetime gifts?

Helps with your tax planning, reducing the value of your estate and your inheritance tax liability.

You can give £3,000 away in any financial year and this is covered by your annual exemption

You get to see your loved ones enjoying your gift in your own lifetime.

Wedding Gifts

Do you know someone who is planning to pop the question this Valentine’s Day? It’s also a leap year on 29th February!

You can give away the following sums of money as a wedding gift:

  • £5,000 to your children
  • £2,500 to your grandchildren or great-grandchildren
  • £1,000 to any other relative or friend

This does not count towards your annual exemption, so you can still give the recipient gifts for their birthday or other occasion in the same tax year as their wedding.

Spread the love!

In one tax year, you can give up to £250 to as many different recipients as you like (you cannot give multiple gifts of £250 to one person or anyone you have used your annual exemption on).

What are the disadvantages of lifetime gifts?

If you make a lifetime gift, especially of cash or property, you must be sure you can afford to live without this.

Keep a gift list

Keep a list of what you have given, when and to who.

Next Steps

At Crane & Staples, we love assisting our clients with estate and tax planning and are passionate about helping them make the best choices for them and their families.

If you fancy making some lifetime gifts, or maybe you’re just flirting with the idea, please contact our lovely Wills, Trusts and Probate team on 01707 329333.

Happy Valentine’s Day!

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