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    • Jo101
    • By Jo101 7th Oct 17, 9:25 PM
    • 69Posts
    • 7Thanks
    Jo101
    Transfer of unused nil rate band
    • #1
    • 7th Oct 17, 9:25 PM
    Transfer of unused nil rate band 7th Oct 17 at 9:25 PM
    Uncle recently passed away. His wife died in 1991. None of her nil rate band was used when she died. Uncle inherited everything (the home they jointly owned and the jointly owned contents).

    Can her unused nil rate band be added to my uncle's nil rate band giving a total of £650,000 before any inheritance tax is paid?

    He left a will, naming myself and his brother (my father) as executors and the only beneficiaries. Can we do a deed of variation making me the only beneficiary as father does not wish to inherit anything? Thanks.
Page 1
    • Skibunny40
    • By Skibunny40 7th Oct 17, 9:35 PM
    • 86 Posts
    • 67 Thanks
    Skibunny40
    • #2
    • 7th Oct 17, 9:35 PM
    • #2
    • 7th Oct 17, 9:35 PM
    My understanding is that yes, you can combine the unused nil rate band, but it's at whatever the rate was when your aunt died in 1991, not sure of the exact figure but less than £325k. That is then added to the current rate of £325k. Happy to be corrected though...
    • SevenOfNine
    • By SevenOfNine 7th Oct 17, 10:42 PM
    • 1,177 Posts
    • 1,127 Thanks
    SevenOfNine
    • #3
    • 7th Oct 17, 10:42 PM
    • #3
    • 7th Oct 17, 10:42 PM
    Can we do a deed of variation making me the only beneficiary as father does not wish to inherit anything? Thanks.
    Originally posted by Jo101
    Yes, though we used a solicitor over a DiY option to ensure it was done properly. Your father should be mindful of deprivation of assets, though it's NOT necessarily a foregone conclusion that this is his intention. See here http://www.ageuk.org.uk/home-and-care/care-homes/deprivation-of-assets-in-the-means-test-for-care-home-provision/

    Your solicitor should discuss this with you both & should ask questions regarding his current financial status before agreeing that a DoV is a viable option.
    Seen it all, done it all, can't remember most of it.
    • Keep pedalling
    • By Keep pedalling 7th Oct 17, 11:42 PM
    • 4,103 Posts
    • 4,466 Thanks
    Keep pedalling
    • #4
    • 7th Oct 17, 11:42 PM
    • #4
    • 7th Oct 17, 11:42 PM
    My understanding is that yes, you can combine the unused nil rate band, but it's at whatever the rate was when your aunt died in 1991, not sure of the exact figure but less than £325k. That is then added to the current rate of £325k. Happy to be corrected though...
    Originally posted by Skibunny40
    Not correct, it is the percentage of nil rate band used that is transfered at the current rate, so the total will be £650k.
    • Keep pedalling
    • By Keep pedalling 7th Oct 17, 11:50 PM
    • 4,103 Posts
    • 4,466 Thanks
    Keep pedalling
    • #5
    • 7th Oct 17, 11:50 PM
    • #5
    • 7th Oct 17, 11:50 PM
    A DoV is a useful tool to avoid bumping up IHT on your father's estate, but does not avoid the loss of any current benefits or any future care costs as it would be deemed as deliberate deprivation of assets.
    • badmemory
    • By badmemory 8th Oct 17, 5:12 AM
    • 1,063 Posts
    • 1,134 Thanks
    badmemory
    • #6
    • 8th Oct 17, 5:12 AM
    • #6
    • 8th Oct 17, 5:12 AM
    Agreed - if your parent is ever in need of any benefit then he will be deemed to have received whatever was due to him from this legacy. Obviously if your father has sufficient assets of his own to deal with any eventuality then there would be no problem.
    • getmore4less
    • By getmore4less 8th Oct 17, 6:22 AM
    • 30,841 Posts
    • 18,446 Thanks
    getmore4less
    • #7
    • 8th Oct 17, 6:22 AM
    • #7
    • 8th Oct 17, 6:22 AM
    Agreed - if your parent is ever in need of any benefit then he will be deemed to have received whatever was due to him from this legacy. Obviously if your father has sufficient assets of his own to deal with any eventuality then there would be no problem.
    Originally posted by badmemory
    If at the time of the transfer the father is already over the IHT nil rate band then there is clear link of the DOV to tax mitigation so not deprivation.
    • Yorkshireman99
    • By Yorkshireman99 8th Oct 17, 6:40 AM
    • 3,379 Posts
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    Yorkshireman99
    • #8
    • 8th Oct 17, 6:40 AM
    • #8
    • 8th Oct 17, 6:40 AM
    In any case unless at the time there was a real prospect of him requiring future care it is NOT deprivation although some councils may try to claim that is.
    • Yorkshireman99
    • By Yorkshireman99 8th Oct 17, 6:42 AM
    • 3,379 Posts
    • 2,748 Thanks
    Yorkshireman99
    • #9
    • 8th Oct 17, 6:42 AM
    • #9
    • 8th Oct 17, 6:42 AM
    Agreed - if your parent is ever in need of any benefit then he will be deemed to have received whatever was due to him from this legacy. Obviously if your father has sufficient assets of his own to deal with any eventuality then there would be no problem.
    Originally posted by badmemory
    This is nonsense! Only if at the time of the DOV there was there a foreseeable need for future care. It is not a blanket ban.
    Last edited by Yorkshireman99; 08-10-2017 at 12:17 PM.
    • Margot123
    • By Margot123 8th Oct 17, 8:29 AM
    • 328 Posts
    • 291 Thanks
    Margot123
    Seeking advice from a solicitor specialising in Trusts might be a good idea. Money spent now can save hassle, stress and expense later on.
    • Yorkshireman99
    • By Yorkshireman99 8th Oct 17, 9:31 AM
    • 3,379 Posts
    • 2,748 Thanks
    Yorkshireman99
    Seeking advice from a solicitor specialising in Trusts might be a good idea. Money spent now can save hassle, stress and expense later on.
    Originally posted by Margot123
    Using a trust will not, AFAIK, make any difference.if DOA is a concern.
    • SevenOfNine
    • By SevenOfNine 8th Oct 17, 10:06 AM
    • 1,177 Posts
    • 1,127 Thanks
    SevenOfNine
    Sadly OP, there is always a few who scream deprivation of assets as if it is a lifetime issue. IT IS NOT & they are painfully misinformed.

    As I've said, a good solicitor will take a thorough look at the financial circumstances of your father before advising from a position of professional knowledge. Ours earlier this year was a STEP member redirecting £100k to our grandsons with a DoV, but ONLY after asking numerous pertinent questions first, advising us that we had 2 years from DoD to consider it, & virtually insisting we wait at least a year.

    See a professional.
    Seen it all, done it all, can't remember most of it.
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