Person dying....How to pay least tax?

purdyoaten

cedejah wrote: »

But if she leaves things to her kids then she will have to pay tax?

I think, given that question, that a will prepared by a good solicitor is fundamental.

getmore4less

Is she getting confused by drugs?
If no will is she of sound enough mind to make one?


There seems to be lack of understanding and potentially miscommunication.


It will be fairly easy to structure this so no tax is paid but she will need to be prepared to leave some(excess of £325k) of the estate to her husband.


Even if there is no will the estate will likely be free if IHT as there is a spouse.

agrinnall

cedejah wrote: »

I assume she has a will and all the assets will go to the husband and kids I believe. It's just the cash that she has been wanting to spend. I am not 100% but I believe that it was her lawyer that told her it will be subject to 40% tax.

If this is true then she needs to get a better lawyer and if necessary draw up a new will.

zygurat789

agrinnall wrote: »

If this is true then she needs to get a better lawyer and if necessary draw up a new will.

Trouble is we are getting this third or fourth hand. The solicitor may have given a perfectly correct answer but we don't know the exact question.
we see it so often on here someone asking the wrong question or totally misunderstanding the answer.

xylophone

http://www.hmrc.gov.uk/inheritancetax/understand/index.htm

SeniorSam

As mentioned by others, if her estate goes to her husband then no Inheritance tax is payable. When he dies later, there will be an allowance of both his and her nil rate band allowances, presently £325,000, so if the husband dies with more than £650,000 estate, then anything above that amount will be subject to 40% tax.

This assumes that all gifting allowances are within the acceptable limits over the last 7 years.

Sam