Gifts to individuals and charitable gifts (and the tax credits provided by them) can be entered on the Expenses > Legacy screen.
Select the Recipient from among the people in the plan, as a Person Outside of Plan, or as being a Charity.
On the Time panel, to the right side of the screen, select the Event tab and use events to schedule the time span over which the gifts will be made.
- If the gift is to be a one-off, select a single event (green dot) to indicate the year in which the gift will be made.
- If these will be a series of gifts made over several years, select an event to indicate when these gifts will begin (green dot) and an event to schedule their end (red dot).
These legacy gifts will be treated as potentially exempt transfers and will be potentially tax exempt to the recipient, depending on the proximity of the timing of the gift and the mortality of the person gifting, as set in the planning timeline.
PET's can be viewed on the Overview > Legacy screen and can be output from into printable reports from the Reports screen, by selecting the Estate and Inheritance Overview option.
Note: If you would like to create a scenario with a movable mortality event, to model the effect of these PETs, a special drag-and-drop replacement mortality event found on the Time screen. Read more >>
Also Note: If your client has any PETs or a nil rate band carryover, from the death of a spouse, that pre-date the start of the plan, these can be entered on the Taxes screen.
Timing - How to schedule a one-off gift or charitable donation