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KembaraXtra – Legal Terms – Potentially Exempt Transfer (PET)
A potentially exempt transfer (PET) is a transfer of value made by one individual to another for inheritance tax purposes.
A PET is not immediately subject to inheritance tax when the gift is made.
If the donor survives for seven years after making the transfer, it becomes fully exempt from inheritance tax.
If the donor dies within seven years, the transfer may become chargeable to tax.
The concept is an important part of estate planning and inheritance tax law.
A potentially exempt transfer (PET) is a transfer of value made by one individual to another for inheritance tax purposes.
A PET is not immediately subject to inheritance tax when the gift is made.
If the donor survives for seven years after making the transfer, it becomes fully exempt from inheritance tax.
If the donor dies within seven years, the transfer may become chargeable to tax.
The concept is an important part of estate planning and inheritance tax law.
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