Patricia was already a client and we had a financial plan in place, showing that she already had enough assets for her lifetime.
Therefore, Patricia did not need the full proceeds from the house sale. With this in mind, it was decided that after capital gains tax was paid, we allocated £200k to give a gift of £50k to each of her 4 children now.
We invested £300,000 into a Discounted Gift Trust held in an offshore investment bond. This provides her with a tax free income of £1250 per month for the next 20 years. By doing this prior to the cash gifts to the children, there is no inheritance tax payments needed now.