How far does executor need to look at money spent by the deceased in the last 7 years

melanzana

Why anyone would be worried about inheritance tax for their estate....when they are dead - beats me!

I have no intention of managing my estate to reduce taxes for my beneficiaries. That's their problem!

securityguy

Yorkshireman99 wrote: »

It was not the practicalities that concerned me but the law. I understood that the attorney had to be resident within the jurisdiction of the Court.

You're very fond of guidance sheets from solicitors.

http://www.owenwhitecatlin.co.uk/media/17942/owc_lasting_powers_of_attorney_faq.pdf

"My son lives abroad, can he still be an attorney? Yes he can – however consider whether he would be suitable. What would happen if an emergency arose and the Attorney was needed at once?"

mwalter51

The LPA was properly registered by our solicitor with myself and one other person listing home addresses in Canada. So obviously it is legal or it would have been rejected by the Office of the Public Guardian. I have had no problem with people/businesses accepting the LPA except for the nursing home who didn't like me watching them and how much money they were withdrawing for their fees each month. I was making them squirm as they didn't want to answer to me for all the "extras" they were charging for.

Yorkshireman99

Far enough. I apologise for getting it wrong.

mwalter51

No apology needed! This is about sharing information and being educated.

Sicard

Setting up trusts is a good way of reducing large cash assets and taxes. But there are many ways of doing this so if this is of interest seek professional advice.

Keep_pedalling

Sicard wrote: »

Setting up trusts is a good way of reducing large cash assets and taxes. But there are many ways of doing this so if this is of interest seek professional advice.

Setting up a trust does not magically make IHT disappear, and there are a number of problems trying to set one up at this stage of the OPs aunts life.

First off the 7 year rule would apply, so she would have to live that long for her beneficiaries to benefit.

Secondly as she is already in care this would be seen as deliberate depreciation of assets once her other assets had run out.

Thirdly if the aunt does not have the mental capacity to have a full understanding of what she is doing in setting a trust up, the OP is not allowed to set one up for her, because an attorney only has the power to manage the assets for the sole benefit of the donor.

securityguy

"Secondly as she is already in care this would be seen as deliberate depreciation of assets once her other assets had run out."

Deprivation of assets. And it might not, depending on whether the levels of income and assets she was left with were reasonable given her situation. DoV [edit: I meant DoA] rules do not preclude transfers of money over and above reasonable levels of provision. You would need professional advice on this.

Keep_pedalling

securityguy wrote: »

"Secondly as she is already in care this would be seen as deliberate depreciation of assets once her other assets had run out."

Deprivation of assets. And it might not, depending on whether the levels of income and assets she was left with were reasonable given her situation. DoV rules do not preclude transfers of money over and above reasonable levels of provision. You would need professional advice on this.

True, I really should have added the word could in that statement.

Sicard

Keep_pedalling wrote: »

Setting up a trust does not magically make IHT disappear, and there are a number of problems trying to set one up at this stage of the OPs aunts life.

First off the 7 year rule would apply, so she would have to live that long for her beneficiaries to benefit.

Secondly as she is already in care this would be seen as deliberate depreciation of assets once her other assets had run out.

Thirdly if the aunt does not have the mental capacity to have a full understanding of what she is doing in setting a trust up, the OP is not allowed to set one up for her, because an attorney only has the power to manage the assets for the sole benefit of the donor.

You must know what you're saying otherwise you wouldn't say it. But I benefited from a trust fund set up by my deceased grandfather about 40 years after he'd died.