Inheritance Tax: Save £100,000s with simple advanced planning Article Discussion
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thanks u local hero
he isnt in great health, bit of a dodgy heart at mo, wish he could live for 7 more years but unfortunately i dont no whether that will be the case or not.
the son doesnt own his own property, is it worth goin ahead with the tenants in common neway just in case?
wat is can we do?0 -
It is a gamble but it could be worthwhile doing. If he doesnt make it for seven years then effectively the value of the house including the gifted part will be taxed in the normal way. Since there's not much to lose (apart from a possible land registry fee), I personally probably would do it.
What's the value of his estate and does he have any debts (mortgage etc)?[FONT="]Public wealth warning![/FONT][FONT="] It's not compulsory for solicitors or Willwriters to pass an exam in writing Wills - probably the most important thing you’ll ever sign.[/FONT]
[FONT="]Membership of the Institute of Professional Willwriters is acquired by passing an entrance exam and complying with an OFT endorsed code of practice, and I declare myself a member.[/FONT]0 -
the house hasnt been valued, but the house prices r def more than 300,000 round wher he lives.
he does have any debts and the morgage is paid.
spoke to my mum about it and we said we should get the house valued, also she said that on his will it aready states half of the house goes to the son n the 2 quarters left go to the other 2 children.
does than mean u dont have to do the tenants in common thing as its already stated in the will. or has it got to be done anyway.
if so wher do you do it, and cheap as poss
many thanks0 -
The point I'm trying to make is that if the value of his estate (assets less debts) is greater than £300,000 when he dies anything over £300,000 will be taxed at 40%.
If he gives half of the house now to the son living there and survives for 7 years then his estate will be worth a lot less when he dies therefore less/no inheritance tax to pay.
The Land Registry will be able to help if he makes the gift now, alternatively a solicitor will charge £200 - £300 to do it.[FONT="]Public wealth warning![/FONT][FONT="] It's not compulsory for solicitors or Willwriters to pass an exam in writing Wills - probably the most important thing you’ll ever sign.[/FONT]
[FONT="]Membership of the Institute of Professional Willwriters is acquired by passing an entrance exam and complying with an OFT endorsed code of practice, and I declare myself a member.[/FONT]0 -
hello
not sure what I'm supposed to do yet to post a message, this site looks confusing to the eye!
Re Localhero message 15, Harryhound mentions having to pay CGT on selling a parent's property if they own another property as well, presumably in the UK. My sister and I are tenants in common with our mother. She lives in her own house, my husband and I own a house in France so presumably just my sister would be liable for CGT
thanks0 -
hi. this thead is very informative, even if I don't understand it all. How does equity release cloud the situation? my parents house is worth 350000, and goes to each other on death. Say the surviving spouse took 50000 equity release would this mean their estate would be IT free?
Also I am a bit confused re: CGT. Does his mean that an estate consisting of a 350000 property would pay 40% on the excess 50000, then CGT on the sale proceeds?0 -
I am also a bit confused at the moment. When my husband died, just less that 2 years ago, we had our wills made so that everything passed to the other on the first death. Am I right in thinking that I should now be going to re-write my will before the 2 years are up (if this makes sense). I have loads of questions to ask but don't want to look silly when I get to the solicitor. Any help would be appreciated. thanks0
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Sav4it, that's incorrect.
Not all the beneficiaries need to agree. It is only the beneficiary giving up the benefit. The new beneficiary(s) will also be parties to the deed, and usually out of courtesy the original executors (who must in any case be parties if any additional tax arises).
Therefore let's assume an example where a will is split 3 ways in equal shares. If one of those beneficiaries wishes for their share to pass to their own children instead, then they can do this because it doesn't affect the other 2 beneficiaries. If either of the other 2 of those beneficiaries then later on (but within 2 years) wish to do likewise with their own share, they themselves can also execute a deed of variation.
To vary the whole estate, then of course all 3 beneficiaries would then need to agree, since they would be giving up a 1/3 share.[FONT="]Public wealth warning![/FONT][FONT="] It's not compulsory for solicitors or Willwriters to pass an exam in writing Wills - probably the most important thing you’ll ever sign.[/FONT]
[FONT="]Membership of the Institute of Professional Willwriters is acquired by passing an entrance exam and complying with an OFT endorsed code of practice, and I declare myself a member.[/FONT]0 -
hi. this thead is very informative, even if I don't understand it all. How does equity release cloud the situation? my parents house is worth 350000, and goes to each other on death. Say the surviving spouse took 50000 equity release would this mean their estate would be IT free?
Also I am a bit confused re: CGT. Does his mean that an estate consisting of a 350000 property would pay 40% on the excess 50000, then CGT on the sale proceeds?
Can anyone explain, please?0 -
How does equity release cloud the situation? my parents house is worth 350000, and goes to each other on death. Say the surviving spouse took 50000 equity release would this mean their estate would be IT free?
Yes, but it might be smaller than you expected.Don't forget you have to pay back the original loan and the rolled up interest on it out of the proceeds of selling the house. To get to the desired 300k figure you would probably be better to borrow 20-25k and then keep an eye on the rolled up interest figure as time goes by. You can also set a total equity release figure but then draw it down in tranches over the years.This reduces the cost of interest rollup and enables you to fine tune the amount for tax reduction purposes.Also I am a bit confused re: CGT. Does his mean that an estate consisting of a 350000 property would pay 40% on the excess 50000, then CGT on the sale proceeds?
No.There is no CGT on death.Trying to keep it simple...0
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