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Question about Gifts and lifetime transfers
littlemissy29
Posts: 56 Forumite
Afternoon all
I am filling out IHT205 (my mother passed away 2 weeks ago) and have reached the box 9.1 regarding Gifts and other lifetime assets.
In 2014 my uncle passed away (my mums brother in law) - after going through probate there wasn't any tax to be paid on his estate. Once mum received her brother in laws estate she gave me and my brother a share of 50k. Would I need to write this in the box 9.1?
Thanks
I am filling out IHT205 (my mother passed away 2 weeks ago) and have reached the box 9.1 regarding Gifts and other lifetime assets.
In 2014 my uncle passed away (my mums brother in law) - after going through probate there wasn't any tax to be paid on his estate. Once mum received her brother in laws estate she gave me and my brother a share of 50k. Would I need to write this in the box 9.1?
Thanks
0
Comments
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Yes. If she made no other gifts in that tax year or the previous tax year you can deduct £6,000 as gift relief, so only need to declare £44,000.0
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Sorry for your loss.
What a pity you did not have a solicitor acting for you in 2014 because it would have been easy to have changed the Will of your Uncle so that the £50k was seen to come from him. That would have avoided any gif directly from your mother. So often these possibilities are overlooked and it could be far more cost effective to simply change the earlier Will by Deed of Variation.
Unfortunately the gifts will count, but can be offset somewhat.
SamI'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.0 -
There is the additional complication of an unknown nil rate band.
https://forums.moneysavingexpert.com/discussion/55914250
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