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Forum > Gifts > What is a gift with reservation of benefit?
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Date Posted:
27-Aug-2013 14:40:10
What is a gift with reservation of benefit?

The “reservation of benefit” rules close an inheritance tax loophole.

Generally, giving away money or property during lifetime reduces the size of an estate on death, which can mean less (or no) inheritance tax.

If a deceased person made a gift during their lifetime, its value could be added to their estate on death if they kept back some sort of benefit. This is “reservation of benefit”.

If there has been a gift with reservation of benefit, the value of that gift may be added to the deceased’s estate. This may result in more inheritance tax.
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