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Asset Protection Trusts & Wills

dav964 · 2015-04-07 14:30:50

Hello, Does anyone have any direct experience of using an asset or family protection trust to protect the family home from Inheritance Tax? This is something that is drawn up by a solicitor whereby on a first death the deceased's share of the house is put into trust but the spouse can continue living in the house until…

Comments

dav964 Posts: 34 Forumite

9 April 2015 at 11:15AM
Thanks for the reply - you're right it's not simple...

So on the first death, with a house valued at 1m and 100K of savings: -
50% of the house is moved into trust (i.e. 500K)

IHT is payable at this time to the taxman on the amount the trust exceeds the NRB = 0.40 *(500,000 - 325,000) = 70,000.

100,000 - 70,000 = 30,000 is transferred to spouse

or am I still missing the mark?
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