{"id":959301,"date":"2026-05-14T12:59:21","date_gmt":"2026-05-14T12:59:21","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/959301\/"},"modified":"2026-05-14T12:59:21","modified_gmt":"2026-05-14T12:59:21","slug":"ive-gifted-over-500000-to-my-six-children-so-they-can-avoid-1m-inheritance-tax","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/959301\/","title":{"rendered":"I’ve gifted over \u00a3500,000 to my six children so they can avoid \u00a31m inheritance tax"},"content":{"rendered":"

When he dies, Jeremy Stern believes his family could face an inheritance tax (IHT) bill<\/a> exceeding \u00a31m.<\/p>\n

The 65-year-old Londoner, who still works four days a week in marketing, is married and has six children \u2013 three of his own and three stepchildren.<\/p>\n

To spare them not only a substantial tax burden but also additional stress during an already difficult time, he has been gradually gifting away his wealth in an effort to reduce the amount liable for what is often described as Britain\u2019s most unpopular tax<\/a>.<\/p>\n

Giving gifts during your lifetime is one of the simplest ways to bring down the value of your estate so it falls within the tax-free allowances.<\/p>\n

So far, Jeremy has passed more than \u00a3500,000 onto his children with guidance from a financial adviser.<\/p>\n

Speaking to The i Paper, he said: \u201cI have helped all of my kids get on the property ladder. In fact, I now own and rent out a flat in Brighton that my daughter lived in whilst at university.<\/p>\n

\u201cBut I have always tried to make them get what they wanted first, themselves, and I only helped out with that final bit that might have been just out of reach.<\/p>\n

\u201cGifting should not stop them from striving. But when one of them gets divorced or is a single mum living in Australia, helping becomes natural. I would not feel good enjoying myself, whilst my kids were sweating about grocery bills or rent.\u201d<\/p>\n

The same applies to charitable gifting<\/a>, he said, which was instilled in him by his parents. He has over a dozen monthly subscriptions to charities and gives on an ad hoc basis to many more.<\/p>\n

What are the rules on gifting money to your children?<\/p>\n

If on death your estate is worth more than the \u00a3325,000 tax-free allowance \u2013 the nil-rate band \u2013 anything above this threshold will be subject to IHT, charged at 40 per cent.<\/p>\n

If your home is included in your estate<\/a> and a direct descendant inherits it, your tax-free allowance will be \u00a3500,000 because of the \u00a3175,000 residence nil-rate band.<\/p>\n

Married couples can get a combined allowance of up to \u00a31m but if your estate exceeds this, there could be tax to pay. The \u00a3175,000 extra allowance for your home only applies if the estate is worth less than \u00a32m. On estates worth more than this, the allowance will decrease by \u00a31 for every \u00a32 above \u00a32m that the estate is worth.<\/p>\n

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There are several ways you can give tax-free, including:<\/p>\n