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

Mojisola

joe134 wrote: »

I am just starting the proccess, so need to know what,s what before approaching either, if neccessary.

The Which? books are worth reading.

What you want to do isn't straightforward and, if you don't word it perfectly, could cause a lot of problems.

xylophone

links you have given are directing me to firms of either solicitors

The STEP link enables you to find an appropriately qualified solicitor near you.

If you click on the other link will find a list of topics that relate to your questions with some information about what you are trying to achieve. If you slide up to the top of the page you will find some more links on left hand side to general information.This is not a recommendation - it is simply that there is some helpful information.

I cannot too strongly emphasise that if you are contemplating any form of trust you need expert advice. If you get the wording wrong or your intentions are not wholly clear you are laying up trouble for your heirs.
Here is a link to HMRC information about the the transfer of nil rate band.
http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm

joe134

xylophone wrote: »

The STEP link enables you to find an appropriately qualified solicitor near you.

If you click on the other link will find a list of topics that relate to your questions with some information about what you are trying to achieve. If you slide up to the top of the page you will find some more links on left hand side to general information.This is not a recommendation - it is simply that there is some helpful information.

I cannot too strongly emphasise that if you are contemplating any form of trust you need expert advice. If you get the wording wrong or your intentions are not wholly clear you are laying up trouble for your heirs.
Here is a link to HMRC information about the the transfer of nil rate band.
http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold.htm

Hi xylophone, probably I failed to express myself clearly in my first post.
I do not want to set up a trust, all I want is for us to use the £650k iht allowance up on the second death, without changing from joint tennants, to TIC, if possible??
I have just read the link from 2007 hmrc regarding the transfer of iht allowances, and now I know that, when we are both dead, the kids, who will be executors, know how to achieve this.
I thought, incorrectly that I had to change from ,joint to TIC, but that does not seem to be the case.?I want to KISS.keep it sweet and simple for the kids, without setting up convoluted trust funds to dodge a bit of tax.
I tried your second link, but it wouldn,t connect;could have been down;
All I need to do is to draw a new will up, and ensure kids know that they have to apply for tax forms if we are over £650k, which I will do.
I appologise if I misread your reply.:beer:

joe134

Mojisola wrote: »

The Which? books are worth reading.

What you want to do isn't straightforward and, if you don't word it perfectly, could cause a lot of problems.

Hi Mojisola, we chat again, Thanks for reply, I thought it could be difficult, even drafting a new will myself ,but, if I think it,s not worth it,I will seek expert advice. and I can leave everything in the safe for the wife, or kids, whenever the inevitable happens.
I don,t believe in leaving it to others, have done LPA myself for daughter to administer, for finances only.
No way is a home to be for either of us, had too much bad dealings with them;I know that may not be my/our choice at the time;
Left my body to science.
So no funeral.
Trying to leave nothing to chance if possible, and I have an aversion to so called experts, unless neccessary, then I would do research for one.Preferably by reccomendation.
Forewarned is forearmed.
This blog is the best place to do any research, from the likes of yourself.et.al. and it,s free;:A
Still trying to sort daughters affairs out, regarding her partner selling his share of joint property, without telling daughter.
TIC,s can be a pitfall, to try and save a few bob in tax.don,t know if you recall, only a coulpe weeks ago;
Thanks again:beer:

dzug1

TIC is irrelevant to transfer of the NRB if no trust is involved. If there is a trust - not sure.

If the grandchildren are minors (on the second death) then their share has to be held in trust - not necessarily a complicated one

Though if I were you (or your wife) I'd make a new will after the first death having reviewed my financial and family situation. The current proposal really only serves in the event of simultaneous or at least close deaths.

And word the wills very very carefully to ensure that you don't inadvertently create an unwanted trust.

xylophone

I have just clicked on the link in the post - it works.
With your family circumstances you might want to look through the other link I gave for information.
I would also click on the link on that site to Property Protection trust will.

However, your will is a matter for you - I just felt conscience bound to point out that if you don't get it right, it is your heirs who will pay the price. But over to you!

joe134

dzug1 wrote: »

TIC is irrelevant to transfer of the NRB if no trust is involved. If there is a trust - not sure.

If the grandchildren are minors (on the second death) then their share has to be held in trust - not necessarily a complicated one

Though if I were you (or your wife) I'd make a new will after the first death having reviewed my financial and family situation. The current proposal really only serves in the event of simultaneous or at least close deaths.

And word the wills very very carefully to ensure that you don't inadvertently create an unwanted trust.

hi dzug, thanks for reply.
There are no minors involved, grandkids are all over 18, kids are 45-47-50.
I looked at discretionary trusts when grandkids were minors, and before 1997 iht tax change, but didn,t pursue it.
Now we are both 70, thought I would sort affairs out further, needed to update the wills, but was unsure of the 1997 iht changes, and what was required to use both allowances up;Didn,t realise the executors had to apply for tax form to claim it , now I can itemise all the procedure for them, including probate etc, so it,s straightforward for them too;More homework neccessary yet.
The exististng mirror wills allow for us both going together,so will leave them as they are until first one goes as you say..

I,ve had bitter experience of legal beagles, who sorted mothers will, he was executor(not my choice). He,s now doing 5-7 years for fraud, and took thousands from my mom, and dads estate.
and used dads ID, 40 years after death to set up other scams.
He belonged to the required body of chartered accountants etc;
Homework is vital, and just because they have letters doesn,t mean they are trustworthy.
This thread is littered with posts quereing professional advice given them.If I think I would benefit from a pro, then I know what I want, not what they want.(money)
I,m the eternal pessimist.
:beer:

joe134

xylophone wrote: »

I have just clicked on the link in the post - it works.
With your family circumstances you might want to look through the other link I gave for information.
I would also click on the link on that site to Property Protection trust will.

However, your will is a matter for you - I just felt conscience bound to point out that if you don't get it right, it is your heirs who will pay the price. But over to you!

Hi xylophone, tried again, including property protection, nothing happens, could be my isp AOL, sometimes block certain sites.Will keep trying.appreciate your advice, and everyones.:beer:

xylophone

Including HMRC?
Perhaps you could go down to the local library and try the computer there?And perhaps you might find a book there along these lines http://www.amazon.co.uk/dp/0749459956/?!!!!!hydra0b-21&hvadid=11068009805&ref=asc_df_0749459956
Make sure that anything you use is completely up to date.
http://www.kingsmanassociates.co.uk/Property%20Protection.pdf Another link if you can get it.

John_Pierpoint

dzug1 wrote: »

Do you really want to dictate to your wife what she can do with your assets once she has inherited them? Or vice versa? If you don't the second bit of the will is redundant - it can be changed after your death just as quickly as another will can be drawn up.

You say three grandchildren - what if more come along?

The IHT band does not transfer automatically - you apply for it in the course of applying for Probate

It will be a long learning process - even with professional input.

Mojisola wrote: »

What you want to do isn't straightforward and, if you don't word it perfectly, could cause a lot of problems.

As the majority of people don't get round to making a will (though perhaps the richer ones do) there must be a massive number of deaths of married-with-children couples who create the intestacy default option:
The survivor (usually the wife) gets the first 250K plus a life interest (Interest in Possession Trust) of half the remainder.
As the survivor normally needs all the income they can get this usually translates into 250K plus half the house for life (in death the kids get the other half they don't already own.)

My father did this to us by dying in his 50's - the outcome was satisfactory and it does protect the house against most attempts to charge money against it and take it over.

Unfortunately the tax allowances (tax free capital gain for the half "provided" to the survivor and estate duty exemption on the other half at the second death) so longer apply for new instances.

As the intestacy rules are theoretically a precis of a survey of wills - they cannot really be criticised as "unfair". Though such arrangements adapted for personal circumstances and put in a will might not work as well a "clean break" type will for families who cannot manage together.