Simple one (I think!) around Deed of Variation

ferger

getmore4less wrote: »

not on PETs of 25k. Needs to be over 325k

You've lost me a bit with this. Surely any gift can be a potentially exempt transfer, the important thing is whether PETs bring the cumulative value of the estate over £325k? Since mine is, regardless of gifts, any gift I make within 7 years of death will be subject to IHT - but the rate at which the estate is liable to IHT on the gifts reduces through taper relief? Hence my comment re diminishing liability.

Which bit have I misunderstood? Or is this just a terminology thing?

ferger

ferger wrote: »

but the rate at which the estate is liable to IHT on the gifts reduces through taper relief?

Or, more to the point, the recipient of the gifts

getmore4less

Taper relief does not apply to gifts below 325k in the last 7 years.

have another read of the regs,

if the only gifts in the 7 years were the 25k no taper relief on those gifts.


it is a very common misunderstanding of how taper relief works.

ferger

getmore4less wrote: »

it is a very common misunderstanding of how taper relief works.

Indeed I now see that it is! There is a good document here:

http://www.friendslife.co.uk/doclib/ctst26.pdf

..for anyone else labouring under the same misunderstanding!

Thanks

Crabapple

Going back to your original post OP, if the IHT position isn't affected then no-one really needs to see the DoV. You do need to keep it and with the Estate Accounts would be best.

I wouldn't personally think it's something that you can knock up yourself because it might have to be used in the future to explain the gifts were not PETs or deprivation of assets. I have no idea if there are precedents online.

It should be something that could be done at a solicitors for a fixed fee so perhaps make enquiries about costs.