IHT Issues

Daniel54

weatherlobe wrote: »

A Whopping IHT Bill looms unless Osborne gets his act together and doubles the Nil Rate Band ( a former election promise reneged upon) which would cost the country very little. The only other options I think are to provide gifts from regular income as she could prove her standard of living is unaffected.
Having lived through the War she is the epitome of frugality and probably does not spend more than £600 out of her £3000 monthly income.

Osborne has announced a freeze of the nil rate IHT until 2019 ,so not much hope there - the changes to pension inheritance will mitigate this for many people,but I'm guessing not for your mother

http://www.independent.co.uk/money/tax/chancellors-freeze-will-pull-more-into-inheritance-tax-net-8497728.html

I also have POA for my mother ,who is 88 and of sound(ish) mind but poor body.I agree with others that as her Attorney you would be obliged to recuse yourself from any estate planning which would involve her depriving herself of assets

Your mother would appear to be lucky so far not to have needed a higher level of care ,which might account for the size of her remaining estate.My mother requires 24 hour live in care which costs in excess of £45,000 pa and on top of that her monthly outgo-largely the costs of food,heating and running the house,are more than £2,000 a month

Despite being galled to pay IHT,you will still be left a very considerable amount of money after your mother's estate has setlled it's liabilities.Maybe it would be better to view this as a glass half full rather than half empty.

weatherlobe

Thanks for that but I would rather the money go to Charity than the Government.

Savvy_Sue

weatherlobe wrote: »

Thanks for that but I would rather the money go to Charity than the Government.

Deed of Variation can do that if your mother doesn't do anything herself.

Linton

weatherlobe wrote: »

Thanks for that but I would rather the money go to Charity than the Government.

Your thoughts on giving money to charity are very commendable especially as you would lose more than the government.