Inheritance Tax assistance
Discussion
Edited to clarify:
So.. a call for help.
Any ideas where I should start.. specialist tax lawyer/adviser or should any solicitors be able to assist??
Cheers
Cheers 3Dee.. I might just do that.
So.. a call for help.
- Dad died a while ago. now all dads assets are now mums.. and that is all sorted...*
Any ideas where I should start.. specialist tax lawyer/adviser or should any solicitors be able to assist??
Cheers
Cheers 3Dee.. I might just do that.
Edited by My Evil Twin on Wednesday 27th August 12:29
I suspect that whatever was written in the 'Will' will be taken into account.
I don't think that a spouse pays IHT but children will from a certain value.
I think that you will need to speak to an Accountant initially.
Presumably the Executor of the 'Will' will have to finalise this before distributing what's left.
Sorry about your Dad...
I don't think that a spouse pays IHT but children will from a certain value.
I think that you will need to speak to an Accountant initially.
Presumably the Executor of the 'Will' will have to finalise this before distributing what's left.
Sorry about your Dad...
As long as the will passes assets in excess of the nil rate, £325k, to your Mum then interspousal exemption will apply so there will be no IHT issue to worry about.
Remember, anything that was jointly owned, such as the house will pass to her automatically.
If there is still an issue, and you want to get this sorted simply, a deed of variation, within 2 years, can alter things so that assets would pass to your Mum as per the above. She can then look to gift to the beneficiaries using her own allowance/gift exemptions etc.
Your solicitor, one used to delaing with family/probate etc should be able to help and a decent IFA can fill in any more complicated gaps. No need for accountant input.
Remember, anything that was jointly owned, such as the house will pass to her automatically.
If there is still an issue, and you want to get this sorted simply, a deed of variation, within 2 years, can alter things so that assets would pass to your Mum as per the above. She can then look to gift to the beneficiaries using her own allowance/gift exemptions etc.
Your solicitor, one used to delaing with family/probate etc should be able to help and a decent IFA can fill in any more complicated gaps. No need for accountant input.
Speak to a solicitor who specializes in will and probate. Ideally someone who is a member of Society of Trust and Estate Practitioners.
They should be able to advise you on the best way to reduce the IHT liabilities. Bear in mind that the will can be altered up to 2 years after the persons death using a deed of variation to take advantage of any savings that can be made.
They should be able to advise you on the best way to reduce the IHT liabilities. Bear in mind that the will can be altered up to 2 years after the persons death using a deed of variation to take advantage of any savings that can be made.
ellroy said:
As long as the will passes assets in excess of the nil rate, £325k, to your Mum then interspousal exemption will apply so there will be no IHT issue to worry about.
Remember, anything that was jointly owned, such as the house will pass to her automatically.
just called HMRC help line and the guy confirmed this 'as current legislation, but of course may change in future'.Remember, anything that was jointly owned, such as the house will pass to her automatically.
So Mum's IHT allowance would be 650k.. which is I think more than enough to cover what she has.
Mum has been worrying about 'HMRC getting 40% of what dad sweated for' for a while.. so i can tell her not to worry about it.
We have never had money as a family, so mum having sold the family home (dad bought the s
ttiest house in a really nice area 40 years ago) and being in this situation is a learning curve for us all.wow.. cheers PH.
My Evil Twin said:
Mum has been worrying about 'HMRC getting 40% of what dad sweated for' for a while.. so i can tell her not to worry about it.
wow.. cheers PH.
Just ensure she stays fit and healthy otherwise it will nearly all go in paying for care home fees...the issue that none of main parties have addressed.wow.. cheers PH.
It would be £650,000 now as the Nil Rate Band (NRB) is currently £325,000. However, the NRB is due to increase in 2019.
Here's an example of how it works from the HMRC website:
Example 1- transferring the whole of an unused threshold
Mark dies in May 2007. He leaves an estate worth £400,000 to his wife Sharon. She dies in August 2008, leaving £600,000. When Mark died the Inheritance Tax threshold was £300,000. When Sharon died, the threshold had gone up to £312,000, so her estate was over the threshold.
None of Mark's threshold was used when he died because he left his entire estate to his wife and he hadn't made any lifetime gifts. So Sharon's personal representatives can transfer 100% of Mark's threshold to increase her threshold. They don't transfer £300,000 - the threshold when Mark died - but the percentage of the nil rate band he didn't use, ie 100%. They then apply this percentage to the threshold at the time Sharon died.
So Sharon's threshold increases to £624,000, twice the 2008-09 threshold of £312,000, using 100% of her nil rate band and 100% of Mark's. This means there's no Inheritance Tax due on her estate.
Here's an example of how it works from the HMRC website:
Example 1- transferring the whole of an unused threshold
Mark dies in May 2007. He leaves an estate worth £400,000 to his wife Sharon. She dies in August 2008, leaving £600,000. When Mark died the Inheritance Tax threshold was £300,000. When Sharon died, the threshold had gone up to £312,000, so her estate was over the threshold.
None of Mark's threshold was used when he died because he left his entire estate to his wife and he hadn't made any lifetime gifts. So Sharon's personal representatives can transfer 100% of Mark's threshold to increase her threshold. They don't transfer £300,000 - the threshold when Mark died - but the percentage of the nil rate band he didn't use, ie 100%. They then apply this percentage to the threshold at the time Sharon died.
So Sharon's threshold increases to £624,000, twice the 2008-09 threshold of £312,000, using 100% of her nil rate band and 100% of Mark's. This means there's no Inheritance Tax due on her estate.
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