Jon Golding looks at ways of securing a £1m IHT-free exemption for gifts and legacies.
Lottery winnings of £1m are not exempt from inheritance tax (IHT) once they become part of a person's estate. Winnings paid out to members of any formal National Lottery or syndicate are exempt from IHT provided a written agreement was drawn up before the win; this ensures each person receives what legally belongs to them within the agreement rather than a taxable ‘gift’ from the first named lottery participant.
Who qualifies?
However, there is
