Executors have to declare gifts made in the seven years before death. If there’s no record, it’s one person’s word against another’s — and HMRC won’t take your family’s word for it.
Example: “Mum gave me £10,000 towards my deposit.”
Sibling’s reply: “No, she loaned it to you.”
Outcome: delay, stress, possible tax bill.
Analogy: Think of it like lending a book. Unless you write down who borrowed it, years later nobody remembers — and arguments begin.
A simple spreadsheet, notebook, or even a list kept with your Will is enough.
Extra nuance: Gifts “out of income” can be exempt from IHT — but only if there’s proof your income covered them. Without records, HMRC won’t allow it.
Practical tip: Record the amount, date, and who received the gift. Note if it’s “out of income” or from capital.
Call to action: Start recording today — ask Lucy for our simple template if you’d like one.
Back to You are not Immortal – a practical guide to a delicate topic – IHT
