If you have young children, understanding guardianship is crucial. Without a legal guardian appointed in your Will, the Family Court will decide who raises your children - not you. This guide explains the critical consequences and why making this vital decision now brings invaluable peace of mind for your family's future.

Are you thinking about gifting your home to your children to reduce Inheritance Tax, but you'd still like to live there? It's one of the most common questions we hear at Westwood Estate Planning, and for good reason. The idea seems straightforward: give away your property now, continue living in it, and reduce the size of your taxable estate. Everyone wins, right?

Unfortunately, this is where many well-intentioned people unknowingly walk straight into one of the most expensive Inheritance Tax traps: the 'Gift with Reservation of Benefit.' And the consequences can be devastating for families who discover, after a loved one has passed away, that their careful planning didn't work at all.

In this guide, we'll explain exactly what this trap is, why it catches so many people out, and—most importantly—how you can genuinely gift assets to your family without falling into it.

The Three Essential Conditions You Must Meet

For a gift to qualify for the 'Gifts from Surplus Income' exemption, you must satisfy three crucial conditions:

1. From Income, Not Capital: Gifts must come from your regular income (pension, salary, dividends, etc.) after all your usual living expenses are paid, not from savings or asset sales. It's about genuine 'surplus.'

2. Must Be Regular: The gifts need to form a habitual pattern—monthly, quarterly, or annually—demonstrating a clear intention to make ongoing payments.

3. Maintain Standard of Living: After making gifts, you must still have enough income to maintain your usual lifestyle without financial strain or dipping into savings.

Remember, your executors will claim this exemption using form IHT403, so thorough record-keeping is vital.

Are you thinking about helping your children or grandchildren financially—perhaps with a house deposit or university fees—but you're worried about how it might affect Inheritance Tax? You're not alone. Many of our clients at Westwood Estate Planning want to be generous now, while they're here to see their family benefit, but they're unsure about the rules and don't want to create problems down the line.

The '7-year rule' is one of those phrases that gets mentioned a lot, often causing more confusion than clarity. In this article, we'll break down exactly how it works, what gifts are affected, and—most importantly—how you can make gifts wisely to reduce your potential Inheritance Tax bill while supporting the people you care about.

By the end, you'll have a clear understanding of this essential rule and practical steps you can take today.

Have you ever felt frustrated thinking about Inheritance Tax (IHT) in the UK? Many wonder why they pay tax again on earned money, or believe IHT is 'optional.'

At Westwood Estate Planning, we cut through the confusion, explaining who IHT truly affects, including the impact of upcoming changes like pensions from April 2027.

We offer empathetic guidance and a comprehensive approach to help you understand your options, protect your family's future, and gain genuine peace of mind. Ready for clear answers? Book a free, no-obligation 15-minute chat with us today