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

jem16

martinm wrote: »

Yes it was all passed to my mother, both my brother and I was living at home at the time. All my borthers money went to my mother when he died, I moved out 7 years ago but who has the NBR I thought that was me and it was fixed at 300,000 pounds?

Martin

As all your father's estate passed directly to your mother, your mother was able to use you dad's allowance as well as her own. This was the change announced by Gordon Brown in his last budget. The good thing for your mother was that the change was retrospective and allowed your mother to regain that allowance which she would not otherwise have had.

As the allowance was £300k on your mother's death 4 weeks ago, she had her own allowance plus your father's allowance so a total of £600k. So no inheritance tax is due at all.

martinm_2

Are you sure ???:T

What do I have to put on the forms or what do I have to prove to make this so please when I submit for the probate??

Martin

sloughflint

Absolutely.
There is another thread somewhere that says what info you need to provide. I'll look it up.
http://forums.moneysavingexpert.com/showthread.html?t=790705
One less worry for you but sorry about your loss.

martinm_2

Let me first thank you all for your help today and it is such a big help that words fail me.

I have read what is needed and I will start looking however 22 years is a long time ago. I know my mother has the probate, I hope with the house deeds, and with it she changed the house into her name from joint names. As for values they sent in at the time that may be hard one to find but I will start looking. So far I have only just put the funeral behind me and not started looking in her house yet.

Again my thanks, and keep up the good work.

Martin

harryhound

martinm wrote: »

I have read what is needed and I will start looking however 22 years is a long time ago. I know my mother has the probate, I hope with the house deeds, and with it she changed the house into her name from joint names. As for values they sent in at the time that may be hard one to find but I will start looking. So far I have only just put the funeral behind me and not started looking in her house yet.

I had the same problem when my mother died in 2004 - We have been here before: My father died in 1967 and we had to pay death duties back then, BUT do not have to pay them again on the second death. I only had very partial records but I managed to get a solicitor (not the 1967 one - he and his firm had popped their clogs) to back me up for a modest sum and the Capital Taxes Office was able to confirm the situation from their records. The "charge" on the house, saying it could not be sold until proof of payment of Death Duties was provided, probably gave them a hint;).
Good luck sourcing the documentation you may need, from the legal as against the tax system.

Harry.

drivingmecrazy

martinm wrote: »

I am new to IHT, my Mother died 4 weeks ago, I am the only son.

The house and saving add up to about 420.000 pounds. Looks like I will pay 48k tax bill, do you think that is correct?

If I went to a financial advisory etc do you think they will save me more than the costs that they will charge for their services?

I have downloaded all forms etc and looks straight forward just a lot of money to pay out !!

Thanks

Martin

Looks like it but I was in a similar position and thought paying the solicitor fees of about£12000 was just too much, in the end came accross an ebay ad where probate service was being offered for £300 but I opted for phone advice/support , the guy was very helpful and I got through the whole probate process very easily and I only had to pay him £200 and saved a lot of tax, so I can't recommend a solicitor. Try Ebay, he may still be advertising or I will have his number somewhere. Good luck

drivingmecrazy

if your looking for in depth cheap advice search ebay for inheritance tax, I used a guy based in the midlands and he was cheap and very good, saved me a lot of time and tax

sloughflint

drivingmecrazy wrote: »

Looks like it but I was in a similar position and thought paying the solicitor fees of about£12000 was just too much, in the end came accross an ebay ad where probate service was being offered for £300 but I opted for phone advice/support , the guy was very helpful and I got through the whole probate process very easily and I only had to pay him £200 and saved a lot of tax, so I can't recommend a solicitor. Try Ebay, he may still be advertising or I will have his number somewhere. Good luck

£200 for phone advice when you can call the probate line for free?

martinm_2

Thanks Sloughflint, calling them will be my first steps if I need to, that is the HMCS one?

I am being made redundant after 19 years monday week so I will then have some time to start on the probate.

Martin

silentotter

I am just about to go through probate having lost my last parent and must admit to feeling somewhat confused by inheritance tax. The Estate amounts to roughly £420,000 in total.

I understand that the allowance is £300,000. There are no pensions being paid in and no gifts have been made to anyone on the last 7 years. Would I be liable to any or much inheritance tax?

Is is worth getting a solicitor for an estate this size or would an IH tax specialist be better?

Help!!

Silentotter