Inheritence tax questions, help please

noh

Mojisola wrote: »

Unless they know for sure which of the couple is going to die first, a 50/50 split is more usual.

A 50/50 split is usual.
The value of half a property is not the same as half the value of a whole property.
It is what a willing buyer is prepared to pay. If there is no willing buyer then the half share in the property will be valued at zero.

Mojisola

noh wrote: »

A 50/50 split is usual.
The value of half a property is not the same as half the value of a whole property.
It is what a willing buyer is prepared to pay. If there is no willing buyer then the half share in the property will be valued at zero.

No, the council will put a charge on the house so that they can claim money back when the house is eventually sold.

noh

Although I am sure that happens in some cases it is not what the age concern document I linked to above says.

Mojisola

noh wrote: »

Although I am sure that happens in some cases it is not what the age concern document I linked to above says.

Can you quote the bit you mean?

atush

I manage their investments now and I was trying to think of a way to get the £35,000 back to her without effecting the tax, i.e. from my stepfathers money to her without having any effect on the IHT side of things, although she would inherit it anyway eventually I suppose. I think my mother preferred that they help me equally so that my stepfather felt he helped as well.

Transfers between spouses are tax and IHT free. So he could transfer 35K to your mother Before she gifts it to you. Then all 3 of you would know they had given 35K each even if it was one gift of 35K from your mother?

xylophone

No, the council will put a charge on the house so that they can claim money back when the house is eventually sold.

The following http://forum.alzheimers.org.uk/showthread.php?44409-Will-tenants-in-common-have-to-sell-Mums-house-for-care-home-fees
might be worth a look.

noh

Mojisola wrote: »

Can you quote the bit you mean?

See extract below

......................................Regulation 27 clearly shows that it is the value of the resident’s interest that
should be included in the means test valuation not the value of the property
as a whole. A willing buyer would only be willing to pay the current market
value for that beneficial interest.
CRAG is based on this and, at paragraphs 7.017–7.020, suggests that the
value of a joint interest in property will be heavily influenced by whether the
other joint owner(s) or another interested party is willing to buy the resident’s
share. If not, it may be unlikely that an outsider would be willing to buy into
the property. In these circumstances the value of the interest, even to a willing
buyer, could be very low or could effectively be nil. The Local Government
Ombudsman has previously suggested that a local authority should have
‘significant evidence or opinion giving it reason to disagree’ when refusing to
accept that an interest in jointly owned property had a low or nil value
(Complaint 03/C/09384

happyhero

atush wrote: »

Transfers between spouses are tax and IHT free. So he could transfer 35K to your mother Before she gifts it to you. Then all 3 of you would know they had given 35K each even if it was one gift of 35K from your mother?

Would this definitely be acceptable, I mean wouldn't who ever does the bit at the end for tax see what is going on here and say we were just trying to avoid tax and therefore still count it as if £35,000 had been given by each parent?

I had thought of this but had dismissed it as not something that would be permitted.