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Leaving a will

edited 30 November -1 at 1:00AM in Over 50s Money Saving
41 replies 4K views
bundlybundly Forumite
1K Posts
edited 30 November -1 at 1:00AM in Over 50s Money Saving
If I died tomorrow I'd leave property worth over a quarter of a million. I am single and childless. I have five siblings but I don't want any of them to inherit from me as they all have too much already.

My questions are, if I leave all my money to a friend, will that friend have to pay tax on it? If so, how much tax?

If I left it to a blood relation, say a great-niece, would that make it exempt from tax?

If I married my boyfriend, and left everything to him, would that make it exempt from tax?

Thank you.
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Replies

  • margaretclaremargaretclare Forumite
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    You're talking about Inheritance Tax, I think, which has been discussed at length - try doing a search on Martin's site.

    Have a look at this:http://www.hmrc.gov.uk/inheritancetax/index.htm

    Leaving money or property to a friend or great-niece is different from leaving it to your husband, because the provisions for IHT for a spouse are different.
    [FONT=Times New Roman, serif]Æ[/FONT]r ic wisdom funde, [FONT=Times New Roman, serif]æ[/FONT]r wear[FONT=Times New Roman, serif]ð[/FONT] ic eald.
    Before I found wisdom, I became old.
  • dzug1dzug1 Forumite
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    If it's a quarter of a million there will be no tax on it whoever you leave it to. The limit is (from memory) £325K

    If you leave it to your spouse there is no tax whatever the amount - until they die themselves.
  • Thank you both so much!
  • NARNAR Forumite
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    Even if Inheritance Tax was payable it would come from your estate (not any beneficiary) and they would receive the nett amount.
  • edited 30 December 2009 at 6:17PM
    missilemissile Forumite
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    edited 30 December 2009 at 6:17PM
    You are entitled to leave your property to whoever you like. Have you thought about what happens when he dies? Rather than it going to his family, you may want to leave it to your siblings kids with a provision that BF is entitled to live in it rent free for as long as he chooses?
  • NARNAR Forumite
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    missile wrote: »
    You could leave it to your kids
    Please see post 1 - OP stated that they don't have any!
  • edited 30 December 2009 at 1:54PM
    Essex_MaidEssex_Maid Forumite
    389 Posts
    edited 30 December 2009 at 1:54PM
    If you do not make a will it will probably go to your immediate family.

    At present inheritance tax is £325 k- so do u have any other assets, savings, insurance policies, employee death benefits, shares, antiques etc.

    Especially if your bf lives with you, you can protect him by leaving the property in trust to him during his lifetime and then stipulate who should be the beneficiary when he dies. Otherwise he will have to leave so property can be sold, so could be messy and unpleasant for those left behind.

    Ring a few local solicitors and ask how much they will charge. My OH recently did a simple will and it cost £100 plus vat, which is not a lot for peace of mind (will prob be a bit more expensive if you want to leave it in trust to bf). The charges from the solicitors varied significantly so it is worth asking/looking around.

    If any tax is due, it is paid out of the estate first. You can make as many bequests as you like eg £? to x and £? to y etc etc.

    Remember, wills can be changed.
  • edited 31 December 2009 at 12:08PM
    bundlybundly Forumite
    1K Posts
    edited 31 December 2009 at 12:08PM
    missile wrote: »
    You are entitled to leave your property to whoever you like. Have you thought about what happens when he dies? Rather than it going to his family, you may want to leave it to your siblings kids with a provision that BF is entitled to live in it rent free for as long as he chooses?

    Thanks.

    My bf has his own property and we don't live together. He's an only child and will inherit a lot from his Mum so I am not going to leave him mine too, most particularly because he refuses point blank to make a will (I have nagged him relentlessly about this) and everything he owns will devolve to some distant cousins that he has never met (God that makes me angry! - not because he should leave everything to me, just wondering why some complete stranger should be allowed to suddenly inherit a load of money... I mean, that person could be a really horrible person, drug addict, rapist, anything!)

    I'm not keen on leaving anything to my siblings kids unless I cannot find anyone more deserving. They all have good jobs, their own properties, and will inherit from their parents. What is more, they never even send me so much as an Xmas card, so they aren't anything to me.
  • Re paying out over a ton for a solicitor to draw up a will, surely as moneysaving experts we ought to make our own wills?

    What is wrong with me simply writing it in MS Word, printing it out then getting two people to witness my signature?

    Thanks!
  • missilemissile Forumite
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    bundly wrote: »
    Thanks.

    My bf has his own property and we don't live together. He's an only child and will inherit a lot from his Mum so I am not going to leave him mine too, most particularly because he refuses point blank to make a will (I have nagged him relentlessly about this) and everything he owns will devolve to some distant cousins that he has never met (God that makes me angry! - not because he should leave everything to me, just wondering why some complete stranger should be allowed to suddenly inherit a load of money... I mean, that person could be a really horrible person, drug addict, rapist, anything!)

    I'm not keen on leaving anything to my siblings kids unless I cannot find anyone more deserving. They all have good jobs, their own properties, and will inherit from their parents. What is more, they never even send me so much as an Xmas card, so they aren't anything to me.

    It seems like BF does not need your money either? I guess the "friend" you wanted to leave money to in post #1 is not your bf?
    I would suggest you spend your money whilst you can. :j
    Equity release is not very MSE. There may be very little value left in your property when you die. In your case that may not be bad thing?
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