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

John_Pierpoint

I need help with a legal question:
It is over here on a different section of the forum
http://forums.moneysavingexpert.com/showthread.html?t=1164505

ardenhall

I need some advice about IHT planning. Does anyone know if there is a product available which mitigates IHT but still gives me access to the capital. I do not need to draw income. A discounted gift trust does not meet these criteria and I cannot find anything else. Any suggestions?
Thanks!!!

203ivy

Any one out there heard of a company called Legacy Partners - they are in the uk and do wills and things - are the genuine ????

margaretclare

BobHolm wrote: »

Hi I wonder if anyone can help. My Father has recently passed away but made a new Will two weeks ago. We have met with the solicitors and they are quoting £3,000 Fee and 1% of his estate as executors. Is this appropriate? Also he had money in his name in the UK, although the vast majority was in bonds my Mothers name after the sale of property in the UK and then in Portugal. They also have a villa and car in Portugal. Will all of this be classed as his estate and subsequently liable to 1% to be taken by the solicitors? Many thanks in advance to anyone who can help.

What is in your mother's name alone is hers, remains hers and is not part of your father's estate.

sloughflint

salinia wrote: »

Father passed away in 1992 his will divided his estate equally four ways..Mother and three adult children. All the children decided at that time to sign a deed of variation in order that mother would be the sole benificiary.
It would be most appreciated to hear from anyone who may be able to help with my question......As a deed of variation was set in place in 1992 would Mothers IHT threshold be increased to £624,000 or would the revenue take the view that the will take's precedent in that Fathers estate was meant to be shared?

I am no expert at all but my belief was that DOV replaced a Will so my view is that your father's NRB has been unused an therefore your mother could utilise his allowance.
Why not call the HMRC IHT and probate helpline for a definitive answer?

localhero

Salinia, you will be entitled to use 2 full nil rate bands. You will need to produce a copy of the Deed of Variation (among other things), when the time comes to claim it.

harryhound

Doesn't Salinia get dad's unused IHT zero rate band for the TAX year in which dad died which can be carried forward and set against mum's liability?

sloughflint

harryhound wrote: »

Doesn't Salinia get dad's unused IHT zero rate band for the TAX year in which dad died which can be carried forward and set against mum's liability?

The year of the father's death is irrelevant; just what proportion of his NRB was used.

Since 0% was used, then the mother's NRB will be 200% of the NRB applicable the year of her death.

When can the threshold be transferred?

The threshold can only be transferred on the second death, which must have occurred on or after 9 October 2007 when the rules changed. It doesn’t matter when the first spouse or civil partner died, although if it was before 1975 the full nil rate band may not be available to transfer, as the amount of spouse exemption was limited then.

http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm

redbantam

I wonder if anyone can suggest the best things for me to do/look into?
Due to long, complicated circumstances (but no intent), my mother has ended up living in the house I own which has a mortgage on it (which I am paying) and I have ended up living in her house. It means she has less stairs to tackle, which is why we haven't moved into the houses we actually each own!
The houses are each worth between £220K and £250K.
My mother wishes to leave her estate to me (she is divorced and I am her only child) when she dies and has made a will to that effect. In total, it may be worth more than the nil rate threshold and, considering the unusual house ownership/occupation situation, we don't know what to do to minimise IHT.
A possible added complication is that my mother recently had a stroke. It's too early to say if she'll need residential/nursing care but I'm worried about what may happen if she does. Would Social Services require the sale of the house she owns even if I'm living in it? If so, (and also if not!) what can I expect to happen?
Any advice, comments or similar experiences on all or some of the above will be much appreciated, thank you.

lottiespoon

a bit confused now with so much information. Can someone tell me does it matter if all the assets are in the husbands name? does this alter the tax allowance? Would it be better to change all the assets that are worth approximately £550K into both husbands and wifes names before one or the other dies?