Advice on Will

Keep_pedalling

johnD17 wrote: »

Can I take your points in turn.


1) I'm angry at your comment - me and my mum are the closest anyone can be, she is angry that we have to pay IHT purely because they aren't married, despite being together for 38 years and despite my dad always planning for this day. It is her money, I don't need it. However I am loathe to pay X figure now for my dads hard earned money, to then also pay tax if anything happened to my mum ON THE SAME asset/money. They are not 'well off'; they are purely getting punished for not being married, and for having a place abroad.

Sorry you feel angry, but they are not being punished for not being married (although that would have helped) but for very poor (nil?) IHT planning on their part. The fact that you were suggesting moving all assets away from you mother to yourself rang very big alarm bells, but I will accept that your motivation may well be your total lack of knowledge on inheritance and IHT matters, as suggested by your following comments, was the reason for suggesting such a move rather than greed.

2) I don't see how she has any nil rate band if they aren't married? I thought nil rate band was only for married couples.


All of this work has been left to me, its kept me awake and added stress onto the grief I've not yet gone through for weeks, and it is so frustrating to get no steer from the countless paid professionals I've sought advice from. The nil rate band is the one 'form' I did not think I would be completed, as my understanding was the nil rate band only applies to that of a married partner, if it was not used? Is that not the case?

..........................

johnD17

But that's my frustration my dad was aware and did prepare hence I feel like 1) I'm missing something 2) he thought Cyprus didn't count and or 3) he didn't appriciate the gifts situation

Keep_pedalling

johnD17 wrote: »

But that's my frustration my dad was aware and did prepare hence I feel like 1) I'm missing something 2) he thought Cyprus didn't count and or 3) he didn't appriciate the gifts situation

It does sound like he had little actual knowledge of IHT rules or planning. Gifting is certainly a good part of it, but it does need doing earlier rather than later and should be backed up with a term insurance policy that will pay out in case of premature death. If the gifts he made were substantial then even if your parents had been married, then the amount of nil rate band that could be transferred would have been much smaller.

nom_de_plume

Maybe I've missed it but can you tell us the date of your father's death?

Also, you mention in your other thread a value of £345 - 365k for the estate. Is this calculated using 50% of the value of the main residence?

Keep_pedalling

nom_de_plume wrote: »

Maybe I've missed it but can you tell us the date of your father's death?

Also, you mention in your other thread a value of £345 - 365k for the estate. Is this calculated using 50% of the value of the main residence?

There was an older thread that stated March this year, there is also a property in Cyprus involved which complicates things somewhat for the OP.

johnD17

Hi both -


date of death was 2nd March this year. I see residence allowance came in April.


Re the value of the estate - yes this is with 50% of the residence.


Re overseas property - I'm not sure why the professionals I've gone to can't give an accurate steer (even with payment!) - its not like its the first time somebody has had a property there.......

Keep_pedalling

johnD17 wrote: »

Hi both -

Re overseas property - I'm not sure why the professionals I've gone to can't give an accurate steer (even with payment!) - its not like its the first time somebody has had a property there.......

Probably because none of them have a clue about the inheritance laws that apply in Cyprus. It is usually advised to have seperate UK and overseas wills when you own property overseas and the UK. You may well find that you need a to employ someone in Cyprus to deal with that property.

johnD17

1) there is a Cypriot will (doesn't really help on the UK probate piece)
2) IHT was abolished in Cyprus many years ago.

Yorkshireman99

johnD17 wrote: »

1) there is a Cypriot will (doesn't really help on the UK probate piece)
2) IHT was abolished in Cyprus many years ago.

All overseas assets count towards the IHT limit assuming the deceased is domicled in the UK. A solicitor who tells you otherwise is a fool. There is a problem as far as disposing of a foreign asset inasmuch as this cannot be done by a UK will.

Keep_pedalling

johnD17 wrote: »

1) there is a Cypriot will (doesn't really help on the UK probate piece)
2) IHT was abolished in Cyprus many years ago.

The problem with Cyprus is not the tax but distribution as different rules apply to depending on maritable status, and on where the owner was born. (See link to get an idea of the complexity)

http://rochfordessex.com/informer/tax-tips/inheritance/