None of us know when we are going to die. But when we do die our assets have to be declared and inheritance tax is normally paid on anything over £325,000.

However, to complicate matters gifts made in the 7 years before the death are added back into the deceased’s estate, if they are above the permitted thresholds. Broadly individuals are allowed to give away as many separate gifts of £250 as they like, plus up to £3,000 per annum.

In a recent case where a gift was not disclosed the beneficiary of the gift was fined 65 per cent of the potential loss of IHT revenue linked to the gift.

There are 2 lessons to learn here:

• If you received a gift of more than £3,000 in any year from someone who dies within 7 years of the gift, make sure you tell the executors of the Will
• If you are making any gifts, keep a record of the amount and date, and keep it with your copy Will. It is only too easy to forget gifts.