Solicitor or Accountant for Complicated IHT situation.

[98elise]

After a couple of health scares, and now pensions being subject to IHT I need to do some serious planning for if I died early. My partner and I are not married (and we're unlikely to be in the future) and the vast majority of our assets are in my name.

If I were to die today there would be the family home, 4 rental properties, a SIPP (in funds), an ISA (in funds), some cash savings and a couple of mortgages all in my name.Obviously that would need to be unpicked/assessed, assets liquidated, IHT taxes paid, and remaining assets transferred.

I want to make sure my executors (and partner) get the right professionals involved. I assumed a solicitor would be all thats needed i need more than just an average high street solicitor? Would it need an accountant as well, and if so one that specialises in IHT?

[rlg43p]

Probably both!

FWIW Martin Lewis urges people in your situation to get married.

https://blog.moneysavingexpert.com/2025/01/martin-...

[bennno]

98elise said:

After a couple of health scares, and now pensions being subject to IHT I need to do some serious planning for if I died early. My partner and I are not married (and we're unlikely to be in the future) and the vast majority of our assets are in my name.

If I were to die today there would be the family home, 4 rental properties, a SIPP (in funds), an ISA (in funds), some cash savings and a couple of mortgages all in my name.Obviously that would need to be unpicked/assessed, assets liquidated, IHT taxes paid, and remaining assets transferred.

I want to make sure my executors (and partner) get the right professionals involved. I assumed a solicitor would be all thats needed i need more than just an average high street solicitor? Would it need an accountant as well, and if so one that specialises in IHT?

Married it will all transfer to her, non married circa £325k will transfer if your will stipulates that with the rest taxed at 40%......

Partly depends on how you hold property in terms of tenants in common or joint tenants, if its all in your name then its an issue.

It'd be too late to leave it to executors and partner.

[98elise]

rlg43p said:

Probably both!

FWIW Martin Lewis urges people in your situation to get married.

https://blog.moneysavingexpert.com/2025/01/martin-...

We're in the process of splitting up so I'd like to keep what I have while I'm alive!

She and the kids can have whatevers left after the taxman has take his share from my cold dead carcass

[98elise]

bennno said:

98elise said:

After a couple of health scares, and now pensions being subject to IHT I need to do some serious planning for if I died early. My partner and I are not married (and we're unlikely to be in the future) and the vast majority of our assets are in my name.

If I were to die today there would be the family home, 4 rental properties, a SIPP (in funds), an ISA (in funds), some cash savings and a couple of mortgages all in my name.Obviously that would need to be unpicked/assessed, assets liquidated, IHT taxes paid, and remaining assets transferred.

I want to make sure my executors (and partner) get the right professionals involved. I assumed a solicitor would be all thats needed i need more than just an average high street solicitor? Would it need an accountant as well, and if so one that specialises in IHT?

Married it will all transfer to her, non married circa £325k will transfer if your will stipulates that with the rest taxed at 40%......

Partly depends on how you hold property in terms of tenants in common or joint tenants, if its all in your name then its an issue.

It'd be too late to leave it to executors and partner.

The property is mostly in my name I was the main earner.

Same with my pension. I have a healthy SIPP (but now subject to IHT) and she just has state pension.

As we're splitting marriage is not an option!

[bennno]

98elise said:

The property is mostly in my name I was the main earner.

Same with my pension. I have a healthy SIPP (but now subject to IHT) and she just has state pension.

As we're splitting marriage is not an option!

So you've never been married, or you are divorcing?

If its the latter then she'd presumably take half of everything, if its the former then any IHT to a non partner is capped at £325k.

[BlackTails]

98elise said:

.

I want to make sure my executors (and partner) get the right professionals involvedf. I assumed a solicitor would be all thats needed i need more than just an average high street solicitor? Would it need an accountant as well, and if so one that specialises in IHT?

Definitely a solicitor and definitely not a high street solicitor. One who specialises in estate planning (that’s the term of art for the specialism you need). They will likely bring in an accountant, though will be familiar with most of the IHT angles themselves.

[phpe]

FYI, unspent pensions are not in scope of IHT until April 2027.

[Jockman]

You need both. A taxation specialist and a probate specialist.

Your SIPP is free of IHT for another year and a half.

[Jockman]

phpe said:

FYI, unspent pensions are not in scope of IHT until April 2027.

Correct. Even then you can avoid IHT by purchasing an Annuity. Take advice first.

[phpe]

Jockman said:

Take advice first.

This, in spades

To assist whoever you speak with, try working out in advance approx estimates assets and liabilities you have

As an unmarried individual with some IHT exemptions, you should have a nil rate band of £325,000, plus up to another £175,000 based on the value of the family home IF the home is being left to children, grandchildren or other direct descendants.

https://adviser.royallondon.com/tools-calculators/... is a fairly simple way of getting a rough estimate of IHT potentially payable

Edited by phpe on Tuesday 16th September 15:55

[J012E]

Hi, I'll DM you with a good recommendation. Whoever you go with, just make sure they are STEP qualified when making your will.

[98elise]

bennno said:

98elise said:

The property is mostly in my name I was the main earner.

Same with my pension. I have a healthy SIPP (but now subject to IHT) and she just has state pension.

As we're splitting marriage is not an option!

So you've never been married, or you are divorcing?

If its the latter then she'd presumably take half of everything, if its the former then any IHT to a non partner is capped at £325k.

Never been married. I'm aware of the cap. The issue is if I died tomorrow she and my kids wouldn't have a clue how to deal with the estate.

I've written a document detailing everything I have, but I now need to write down how to deal with it. She/my kids would need advice on what they can and cannot liquidate to settle the IHT bill, and in what order its best to dispose of property pension etc.

Then there is the issue of mortgages. They are both in my name.

[98elise]

BlackTails said:

98elise said:

.

I want to make sure my executors (and partner) get the right professionals involvedf. I assumed a solicitor would be all thats needed i need more than just an average high street solicitor? Would it need an accountant as well, and if so one that specialises in IHT?

Definitely a solicitor and definitely not a high street solicitor. One who specialises in estate planning (that s the term of art for the specialism you need). They will likely bring in an accountant, though will be familiar with most of the IHT angles themselves.

Thanks, I'll look for a local solicitor that does that.

[98elise]

phpe said:

FYI, unspent pensions are not in scope of IHT until April 2027.

I'm hoping to live longer than that

[98elise]

phpe said:

Jockman said:

Take advice first.

This, in spades

To assist whoever you speak with, try working out in advance approx estimates assets and liabilities you have

As an unmarried individual with some IHT exemptions, you should have a nil rate band of £325,000, plus up to another £175,000 based on the value of the family home IF the home is being left to children, grandchildren or other direct descendants.

https://adviser.royallondon.com/tools-calculators/... is a fairly simple way of getting a rough estimate of IHT potentially payable

Edited by phpe on Tuesday 16th September 15:55

Thanks. The extra 175k is interesting. I'd happily leave the house to the kids.

[98elise]

J012E said:

Hi, I'll DM you with a good recommendation. Whoever you go with, just make sure they are STEP qualified when making your will.

Thanks. I do already have a will, its more having a professional the executors and my beneficiaries can use to make sure everything is done properly and in their best interests.

To be clear its who they can call on if/when I die , not the planning while I'm alive.

Edited by 98elise on Tuesday 16th September 16:37

[Sheepshanks]

One of the reasons I signed up with an IFA is so my wife / kids would have someone they could call who would help them unpick things.

[bennno]

Sheepshanks said:

One of the reasons I signed up with an IFA is so my wife / kids would have someone they could call who would help them unpick things.

How old is your IFA compared to you?

[Panamax]

98elise said:

Thanks. I do already have a will, its more having a professional the executors and my beneficiaries can use to make sure everything is done properly and in their best interests.

To be clear its who they can call on if/when I die , not the planning while I'm alive.

Then the answer should be obvious - whoever wrote your will. But if it wasn't done "properly" it's time now to have a new will "done properly".

Personal opinion: you should at least consider lifetime gifting those BTL's asap. Real risk Robot Rachel will cut back on the current "7 years and then it's tax free" regime. A vast amount of IHT is avoided by lifetime gifts.