Inheritance

[gregs1959]

Hello, have I got this right ??

If I die I’m allowed to leave £325,000 + £175,000 ( main residence allowance) to my wife . Total £500,000.

First question is re the £325,000 could that be rental property?

Then when my wife dies she can leave up to £1,000,000 . ( For arguments sake could that be our main residence say valued £400,000 and the other £600,000 part of our rental properties) .

Second question re the £175,000 we each have ( so main residence allowance is total £350,000) what if the house is valued at say £450,000.

I’m probably going to have to take legal advice eventually I’m 65 and wife is 57.

Appreciate any replies so thanks , it’s a bloody minefield…..

Mark

[LastPoster]

You can leave everything to your wife with no IHT

When she dies, at that point your allowances and hers are combined

[C69]

Worth remembering that the benefit of the residence nil rate bands would only apply if the surviving spouse leaves their home to a direct descendent (so nephews and nieces don't count, for example).

Getting proper advice is a good idea, but you might want to wait until after this month's Autumn Statement. Inheritance Tax rules might be changed quite a lot...

[TwigtheWonderkid]

gregs1959 said:

Hello, have I got this right ??

If I die I’m allowed to leave £325,000 + £175,000 ( main residence allowance) to my wife . Total £500,000.

As said, you can leave your wife £500m. No IHT will apply.

[Sir Bagalot]

gregs1959 said:

Hello, have I got this right ??

If I die I’m allowed to leave £325,000 + £175,000 ( main residence allowance) to my wife . Total £500,000.

First question is re the £325,000 could that be rental property?

Then when my wife dies she can leave up to £1,000,000 . ( For arguments sake could that be our main residence say valued £400,000 and the other £600,000 part of our rental properties) .

Second question re the £175,000 we each have ( so main residence allowance is total £350,000) what if the house is valued at say £450,000.

I’m probably going to have to take legal advice eventually I’m 65 and wife is 57.

Appreciate any replies so thanks , it’s a bloody minefield…..

Mark

Also remember that if the BTL is in your name then at your death the CGT due on sale is zeroed

[The Leaper]

Sir Bagalot said:

Also remember that if the BTL is in your name then at your death the CGT due on sale is zeroed

....at least until 30.10.2024.

[BoRED S2upid]

LastPoster said:

You can leave everything to your wife with no IHT

When she dies, at that point your allowances and hers are combined

And anything above you pay tax. Or give it away now and hope you live for 7 years. Is it still 7 years?

[alscar]

BoRED S2upid said:

And anything above you pay tax. Or give it away now and hope you live for 7 years. Is it still 7 years?

Until the 30th October at least presumably.

[Puzzles]

The Leaper said:

Sir Bagalot said:

Also remember that if the BTL is in your name then at your death the CGT due on sale is zeroed

....at least until 30.10.2024.

Indeed but imagine paying cgt then having 40% of the proceeds swiped!

[eyeslikealemur]

Puzzles said:

Indeed but imagine paying cgt then having 40% of the proceeds swiped!

For Labour to pi** it up the wall on Millipede's insane net zero zealotry and sucking up to the Unions.

We are indeed blessed by our political servants in the UK.

If they mess around with the 7 year rule as well, there's going to be a lot of unhappy older people forced into gifting large sums early to their kids and then hoping that the stress of trying to live for another possibly 14 years (or whatever these ass**les decide is fitting to punish anyone who's dared to make a bob or two) doesn't kill them and leave their kids having to pick up the bill.

No I'm not Mr Whippy lol.

[steve2]

Sorry for jumping in but is there a time limit on using your wife’s allowance ?
Reason is my father in law is 94 and his wife passed away 20 years ago and has now moved up near us.

[Countdown]

gregs1959 said:

Hello, have I got this right ??

If I die I’m allowed to leave £325,000 + £175,000 ( main residence allowance) to my wife . Total £500,000.

First question is re the £325,000 could that be rental property?

Then when my wife dies she can leave up to £1,000,000 . ( For arguments sake could that be our main residence say valued £400,000 and the other £600,000 part of our rental properties) .

Second question re the £175,000 we each have ( so main residence allowance is total £350,000) what if the house is valued at say £450,000.

Mark

You can leave your wife £32 gazillion - transfers between spouses are IHT free

The rental property can be part or all of the £325k allowance. Any amount that goes over the £325k is taxable

If your house is worth £450k then £350k is covered by the Main Residence Nil Rate Band. If you have any unused standard IHT allowance then that can be used against the other £100k

This is quite a handy calculator

https://www.hl.co.uk/tools/calculators/inheritance...

[Mr-B]

steve2 said:

Sorry for jumping in but is there a time limit on using your wife’s allowance ?
Reason is my father in law is 94 and his wife passed away 20 years ago and has now moved up near us.

No time limit

[C69]

steve2 said:

Sorry for jumping in but is there a time limit on using your wife’s allowance ?
Reason is my father in law is 94 and his wife passed away 20 years ago and has now moved up near us.

As long as they were married or in a civil partnership, you should be able to transfer the unused nil rate band. You just have to work out the percentage of the nil rate band that was unused at the time of the first death (using the thresholds in force at the time): https://www.gov.uk/guidance/transferring-unused-ba...

[alscar]

C69 said:

steve2 said:

Sorry for jumping in but is there a time limit on using your wife’s allowance ?
Reason is my father in law is 94 and his wife passed away 20 years ago and has now moved up near us.

As long as they were married or in a civil partnership, you should be able to transfer the unused nil rate band. You just have to work out the percentage of the nil rate band that was unused at the time of the first death (using the thresholds in force at the time): https://www.gov.uk/guidance/transferring-unused-ba...

As Executor of an elderly Aunt’s affairs I was able to claim the unused portion of her husbands unused allowance from his death 45 years ago.

[brianb]

What about from mother to daughter?

My wife’s mother isn’t in the best of health and we need to start planning for the inevitable