Inheritance Tax: Save £100,000s with simple advanced planning Article Discussion

Keep_pedalling

If this was done properly, then the effect would be that your step siblings would have received £325k from his estate, and the money was never part of your mother’s estate. The transferable nil rate band has been lost, although if she owns her house the transferable residence nil rate band is still available.

Having said that your mother really should seek professional advice on this.

charleyhg

My husband and I own our house jointly. We plan to give our son part of the garden in which he may in the future build a house for himself. This ‘plot’ does not have planning consent.
It raises at least two points I can’t find discussed elsewhere... I have read a lot of the 50-odd pages and searched, so I’m posting.

1) How does the 7 year rule for gift tax apply when ‘the giver’ is in fact two people, likely to survive different periods?
2) The land becomes more valuable if he gets planning permission - but it will be his land not ours... for gift tax purposes, what valuation applies - its value at the time we give it to him or the value it achieves during the 7 years?

Thanks in anticipation!

Charley

frowner

Any advice greatly appreciated please, my husband and I both own a property worth approximately £700,000 mortgage free. I have a life insurance policy of £500,000 to protect my husband to look after my children if I were to pass away first obviously this will then take us over the threshold for inheritance tax so how could he protect the inheritance of our children in the future please?

awtech83

@CharleyHG – Depending on the value of your estate, you and your husband may want to look at establishing a Family Partnership with your son vs IHT. If you search Atkinsons ‘News’ section and use the keyword ‘Family Planning,’ they’ve written a few relevant articles on the subject – including one detailing the difference between FPs and IHT - that might help. Inquiring about your concerns to a professional (like Atkinsons) might be best, though.

GD46

My Question is: What value, if any, to insert at question 9 on IHT205? Discounted Gift Plan set up in 2006 with Investment Bond. 2 Settlors who have been receiving monthly payments of capital, 3 Beneficiaries. One settlor now deceased. I have 3 values from Discount Certificate 1) Sum Invested, 2) Value of the PET, 3) Value of the Discount. I also have current value. Which value goes in Question 9.3. I had assumed zero as gift was made 12 year before death but because deceased took withdrawals monthly need advice.

laybourne

Help ..I remain confused.
My situation is that I am 64 and have a main property and flat - that my partner lives
in for work in brighton.
And I have a son who is 26


My total assets are £ 805k excl pension


At the moment I would be liable for c £ 144 inheritance tax.


How could I minimise this and ensure my assets are shared fairly with my partner and son.


What would be the implications of marriage - would this be a soln ?

Savvy_Sue

Marriage enables you to pass more than the IHT limit to your spouse, free of IHT.

But I would strongly recommend 'proper' advice - the kind you pay for - because as well as IHT there are also CGT considerations when either property is sold by someone for whom it has not been a primary residence.

And remember, 'you' aren't liable for anything. It's your estate. You'll be past caring - although it's an excellent idea to consider what issues you are leaving behind and mitigate the tax implications.

laybourne

thankyou...I am still confused with where my son can fit into this.
would my will enable him to inherit say half my assets inheritance tax free...
I guess not ?

Keep_pedalling

laybourne wrote: »

thankyou...I am still confused with where my son can fit into this.
would my will enable him to inherit say half my assets inheritance tax free...
I guess not ?

A married person can leave up to 325k to someone other than their spouse before any IHT is due. If the recipient is a child they can also take advantage of the residence nil rate band if they leave them their home or a share in it.

Unless the majority of your wealth is tied up in those 2 properties you really should be looking at gifting to your son. You then just to live another 7 years for it to drop out of your estate.

Are you per chance a widower?

laybourne

So I have a house which is my main residence worth £460k and flat which my partner lives is for work in Hove worth £ 250k.
We are currently not married.
Savings etc take the value to about £ 8O5 excl pension


as you can see my dilemma is what to do...I understand that marriage can offset IHT but I want to ensure my son is protected...