Donating dead person's possessions to charity

[Deleted User]

If you donate a dead person's possessions to charity (e.g. clothes, furniture, books) does this reduce the value of the estate for inheritance tax purposes or not? This is where the items were not left to charity in the will but where the executor and beneficiaries have decided to donate them after the death.

Thanks

RAS

We disposed of van loads of my mother's stuff to charity. The better furniture and goods we sold via auction. We got £1200 and most of that for one painting that went into the proper auction rather than the household one.

Unless you have antiques, collectables or can spend weeks posting stuff on e-bay for the small profit many household possessions value at £500 in total for probate purposes.

jackyann

Theoretically, maybe.
However, for most ordinary people, the probate office are happy with a sensible "nominal" sum for possessions.
If you feel that there may be something of value that you are donating, I would ask their advice.

I have been an executor twice, and remember filling in the form saying "donated to charity" for quite a lot of stuff.

troubleinparadise

The estate is valued at date of death - so any assets owned by the deceased on that date form part of the estate.

Giving away assets, whether to a charity or otherwise, after that date of death doesn't make them disappear as far as inheritance tax is concerned.... If it did then the executors could give away a house, (or a valuable painting, or shares) to reduce the value of the estate.

getmore4less

It is tax neutral, you can only claim the relief for the value you add to the estate for the stuff you give way

In many cases the practical approach to the stuff you give away to charity is just ignore it for the capital value of the estate.

If significant value then you have to consider alternatives

The reality is that you would need to have the approval of all the residual benificiaries and a DOV to give it away.

getmore4less

troubleinparadise wrote: »

The estate is valued at date of death - so any assets owned by the deceased on that date form part of the estate.

Giving away assets, whether to a charity or otherwise, after that date of death doesn't make them disappear as far as inheritance tax is concerned.... If it did then the executors could give away a house, (or a valuable painting, or shares) to reduce the value of the estate.

Actualy it does, if done properly.

It is not unknown for DOV to be made to give stuff to charity to reduce a IHT bill especialy if you can give enough to reduce the rate on the bit you don't give away.