Free and Cheap Wills discussion area

Savvy_Sue

I think it probably is what they mean, yes. I can't think of anything else it might mean!

cepheus

Thats a Bummer since the pension is only a thousand quid a year, I also need to fill in a few others now.

Really these forms are designed for those with an order of magnitude greater assets, quite pointless in our case.

John_Pierpoint

cepheus wrote: »

In form iht 205 it asks

8. Did the deceased:

• receive benefits from a dependant’s pension from an alternatively secured or unsecured pension fund?

When my Father died my mother received a small private widows pension, is this what they mean?



Edit: the notes in IHT206 say

I don't know exactly what is wanted for the IHT2xx series of forms, as I had to grapple with the IHT4xx - "send us as cheque or you won't be going anywhere" set of forms.
I would bet that HMRC are sniffing about to see if your mum had a pension fund that still has value after she has died. As the tax rules get increasingly complicated, so do the ways of dodging the tax. A pension fund used to need to be turned into an annuity (a payment that dies with the beneficiary (or their spouse these days)) The cut off date for saying bye bye to the capital sum was 75.
As rich people have had to try harder and harder to avoid paying tax rates of 40 - 50% plus national insurance. Some of them have built up pension funds outside of their estate and almost unspendable in a normal life time. So what happens to these "pots" worth a fortune?
HMRC would like to take a look.:eek:

cepheus wrote: »

Thats a Bummer since the pension is only a thousand quid a year, I

Even if the pension fund did live on after mum's death, £200,000 on deposit with the Bank of England, would yield £1,000 per annum and I doubt a golden pot with £200,000 left in it, would catapult mum into paying IHT.

I think you will find that is what that question is trying to get at - but I don't know.
Perhaps someone on the help line or a more experienced poster on the "saving tax" section of the forum could comment if you start a thread to ask that specific question.
[ie can someone please translate this into English:D]

Savvy_Sue

I agree with John, I don't think this is anything to worry about cepheus. Just put it all down!

John_Pierpoint

I am 99% certain that you can stick with the IHT2xx quicker "excepted" system - the pension provider can probably confirm that it is a registered pension fund (ie run like a charity rather that a tax avoidance hedge fund).

Don't rush things (unless there is a special reason why you must) remember there might be some income tax that needs sorting out? Though your mum did time her departure conveniently for the tax year end on 5th April.
[My mum died in April and I got back £5 in tax (+ over £1,000 for the previous 4 years when her stroke put a stop to her ability to correct her tax affairs to take account of the extra personal allowance for senior senior citizens and for the then 10% tax band). Coincidently the 10% tax band still lives on for old people with a small bank interest type income - so you just might need to check it for your mum's situation.

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnSavingsAndInvestments/DG_4015739

Mr Dog's tax affairs were in a total muddle, probably for several years - but as he had not kept photocopies or proper records, I was only able to go back 18 months.]

cepheus

No she didn't pay income tax.

Now I have informed community housing, we need to clear house 4 weeks from today although they might stop the rent if we hand keys in before this. This is a job for my Brother since I will be going back down south after funeral. Hopefully I can deal with estate from then remotely.

Still need to inform benefit office, council tax office, pension office.

cepheus

Yes John you are right, after describing the pension to them the IR seem happy just with IRT205

cepheus

I swore the Oath before a Solicitor today. I got the feeling the Solicitor wasn't too pleased about me doing most of the Probate work myself, and was rather Snooty about it.

"What do you want?"......."No, you must tell me whether you want the papers kept stapled together, personally I don't like it"......"NO, BELOW THE
SIGNATURE!"....

glad I don't deal with these guys frequently, last time was 20 years ago when I bought a house.

Oh Yes, and he didn't give me a receipt for my seven quid he took in cash!

beardiedog

I'm in the process of creating my will with Which? but I'm a little confused (not difficult ) and I'm hoping someone can help me out.

There doesn't appear to be a section for bequeathing UK property as a specific item. Is this not possible or does it have to go in the Distribution of Residue section?

This will writing is a lot more difficult than I thought.

Thanks.
Steve

John_Pierpoint

cepheus wrote: »

I swore the Oath before a Solicitor today. I got the feeling the Solicitor wasn't too pleased about me doing most of the Probate work myself, and was rather Snooty about it.

glad I don't deal with these guys frequently, last time was 20 years ago when I bought a house.

Oh Yes, and he didn't give me a receipt for my seven quid he took in cash!

Probably thought he ought to be able to charge you the fees the partners get of £180 per hour - you probably overstayed your 3 minutes, as well as reminding him he has got the junior boy's job..;)

When I attended the the principle probate registry in High Holborn,
who was [STRIKE] fat [/STRIKE]ample and jolly but seemed to know less about partial intestacy than I did.