Dispute over will...

Sally1973

He lives abroad so he says he wont be liable for inheritance tax. There was over £50k in the account. He took out £5k on the day she died.

Sally1973

Gosh yorkshirelass that's auful. I'm so sorry for you, I hope you manage to get through this x

syorkshirelass

We have sorted probate etc, it is just the house that is worth about £180,000. I just cannot stand the thought of him being in there. The other very annoying thing about it all was the will. My mum worked for a solicitor so you would have thought that she would have had it updated etc...that is if it was the origional will??? I suppose this is something that is really annoying me....he was left nothing in the will....but can live in the house rent free !!!

Paul_Herring

Sally1973 wrote: »

He lives abroad so he says he wont be liable for inheritance tax. There was over £50k in the account. He took out £5k on the day she died.

Merely living abroad isn't an automatic get-out clause for avoiding inheritance tax:

http://www.shelteroffshore.com/index.php/offshore/more/expats-escape-inheritance-tax-moving-abroad-10462

One’s liability to inheritance tax is dependent upon two factors; the first is your country of domicile, and the second is the value of your estate upon death. You do not change your nation of domicile by moving abroad – you change your country of residence. Your country of residence is important when talking about income and capital gains tax, it is not as important when talking about inheritance tax. Your country of domicile is determined by where you were born and raised and can even relate to where you father was born – there is not a single legally defined explanation of what ‘domicile’ is when it comes to the British taxman, it is a concept that can be interpreted by them. And you can bet your bottom dollar that when it comes to reaping inheritance tax, they will do all they can to ensure that you were determined to be of British domicile at the time of your death if your estate is valued over the IHT nil rate band.

If you move abroad, you do not lose your country of domicile – to do so requires significant effort and time. You have to sever all ties with the UK including closing all bank accounts and disposing of property, you cannot regularly return to the UK, and if you still have British family and friends resident in the UK even this can potentially negate any argument you put forth for changing your country of domicile. So, those who suggest that by moving abroad to a nation that does not charge its residents and domiciled citizens IHT you too can avoid British IHT are wrong at best, and purveyors of lies at worst.

Sally1973

Wow, interesting ~ I guess that's his problem though x

Paul_Herring

Sally1973 wrote: »

Wow, interesting ~ I guess that's his problem though x

Something he clearly hasn't planned for however.

If there is IHT due, then it could reduce his £50K down to £30K.

As executors, I'm sure you will have to take this into account....

Check with your lawyers etc.

Sally1973

Oh really?? I just thought we paid out the money and individuals had to sort out what they owed the Tax man?

amersall

Sally1973 wrote: »

Sorry to hear of your troubles amersall, you have my sympathy.

My cousin moved abroad years ago and hasn't had much to do with my aunt at all apart from watching the bank account for her. It's none of my business and was between them, she adored him, and I would never say anything detremental about him to her as I'm sure she had her own opinions about his behaviour towards her. It's all very sad.

My husband and I sold our house and moved 150 miles to be closer to her, I know that we've done nothing to reproach ourselves about. I'm just so upset that my cousin has done it really. I know he knows it's not what she wanted, and I know he know's it's the 'wrong' thing to do. I guess he has to live with that. I've heard of stories like this before several times, I just never thought a member of my family would be like that.

Thank god you can choose your friends. At least we have a clear conscience.

getmore4less

Paul_Herring wrote: »

Something he clearly hasn't planned for however.

If there is IHT due, then it could reduce his £50K down to £30K.

As executors, I'm sure you will have to take this into account....

Check with your lawyers etc.

I think any tax on the aunts must have been paid allready, to be able to get probate to be able to sell the house.

Sally1973

Not sure, my sister is doing all of this stuff (thank heavens!!) must have ben tho as house sold and money in the 'holding' account waiting for all other sums to go in.