Gift with Reservation of Benefit

Giving an asset away does not automatically mean it leaves your estate for inheritance tax purposes.

It is one of the more common misconceptions in estate planning, and one that can be costly. If you continue to benefit from an asset after making the gift, HMRC may still treat it as part of your estate when the time comes. The intended tax saving simply does not materialise.

Whether it is a holiday home, a property or another valuable asset, the Gift with Reservation of Benefit rules catch more people out than most realise, often because the arrangement seemed perfectly sensible at the time.

In this short video, Matt Oates, Senior Partner at Deep Dive Estate Planning, explains how these rules work and why taking professional advice before making significant gifts is so important.