help with a will and a house

reallyclueless_2

I am an executor of a will and I have to sort out the inheritance tax on the will.
There is a house that he lived in, and I have just discovered I actually own the house that my uncle lived in. He signed it over to me when I was 21. This was about 28 years ago. I seem to remember him saying something about "this will save you a load of tax"
Does that mean that I do not have to include the house when I am working out how much inheritance tax I have to pay?
I think I may need some expert help here, but I would like a rough idea of how much I have to pay.
Also, he had some shares with the stockbroker. They were from his father and some solicitor was administering everything. He only got the interest from the shares, and when he dies it is supposed to go to me and my sister.
I think it is some sort of trust.
Does this mean that because the shares did not actually belong to him, I do not have to put that into the calculation.
Many thanks

Londonboy_3

reallyclueless wrote: »

I am an executor of a will and I have to sort out the inheritance tax on the will.
There is a house that he lived in, and I have just discovered I actually own the house that my uncle lived in. He signed it over to me when I was 21. This was about 28 years ago. I seem to remember him saying something about "this will save you a load of tax"
Does that mean that I do not have to include the house when I am working out how much inheritance tax I have to pay?
I think I may need some expert help here, but I would like a rough idea of how much I have to pay.
Also, he had some shares with the stockbroker. They were from his father and some solicitor was administering everything. He only got the interest from the shares, and when he dies it is supposed to go to me and my sister.
I think it is some sort of trust.
Does this mean that because the shares did not actually belong to him, I do not have to put that into the calculation.
Many thanks

You might just be OK on the house - there are rules called the 'gift with reservation of benefit' rules which apply in the house siuation you describe and mean that the value of the house is included in the death estate - however (i dont know this so you need to check) I think the rule came in March 1986 so the gift may pre date this. If so, you are probably OK not to include in the estate.

dzug1

The shares sound as though they were in a life interest trust. That does form part of the estate for IHT purposes

The house I think you are OK for IHT - but will have to pay CGT when it is sold. If the gift had been made fairly recently it would have been a gift with reservation and thus count for IHT but as it was made before 1986 this rule does not apply. (Yep you are right about the date londonboy)