Specific gifts: definition
For the purpose of the partly exempt transfer rules (IHTM26071) a specific gift is any gift other than a gift of the residue or a share of the residue, under IHTA84/S42(1). Typical specific gifts are:
- pecuniary legacies (IHTM12082), whether given absolutely or settled
gifts of particular assets such as
- the deceased’s residence
- furniture, jewellery and other household and personal goods and effects
- shares in companies and business assets.
More unusual specific gifts include
- a provision in the Will (IHTM12041) that a person who owes the deceased money is forgiven the debt, so the debt is cancelled and no longer repayable. (Note that the debt is still an asset of the estate)
- the statutory legacy (IHTM12122) and household and personal goods to which a spouse or civil partner (IHTM11032) is absolutely entitled under the intestacy laws (IHTM12121) other than in Scotland
- legal rights (IHTM12221) under the law of Scotland (for the burden of tax see IHTM26201).
- a provision in the Will that the Inheritance Tax on a lifetime transfer (IHTM14001) is to be paid out of the residuary estate . The person who received the gift will get a pecuniary legacy of the amount of the tax