GIFTS OUT OF INCOME You can also make gifts out of your regular income. These will immediately fall outside your estate for IHT purposes. But it’s not simply a case of handing over money to someone every time you get paid. There are three key criteria you should be aware of: Key point – Gifting assets is a great • Gifts out of income can’t be one-off events. way to reduce the amount of IHT your • After making the gifts out of income, you estate has to pay, but be aware of must be left with sufficient income to the “seven-year rule” and always take maintain your usual standard of living. professional advice. • The gifts must come out of your actual income, rather than simply be lump sums paid from your savings. You should also make sure you keep accurate records of any gifts you make out of your income, including the amount, the date and who you make the gift to. 4 STEPS TO REDUCE FAMILY DISPUTES OVER YOUR ASSETS: 1. Mak e sure you have an up-to-date will in place that covers how you want your assets distributed when you pass on. 2. Set up a Lasting Power of Attorney to ensure your affairs are managed by someone you trust should you be unable to do so. 3. Work with estate planning experts – solicitors and advisers – to ensure the steps you take are correctly set up in accordance with your wishes. 4. Make sure other members of your family and the beneficiaries are aware of your intentions.