Potentially Exempt Transfer

Up to 22 March 2006 a potentially exempt transfer (PET) was an outright gift to an individual, to an accumulation and maintenance trust or to a disabled person’s interest, which becomes an exempt transfer where the donor lives for more than seven years after making the gift.


For transfers that are made after 22 March 2006, a PET is an outright gift to an individual, to a disabled person’s interest, or to a bereaved minor’s trust on the coming to an end of an immediate post-death interest which becomes exempt where the donor survives for seven years after the gift is made.