New Inheritance Tax threshold for couples

tenuissent

We are in a similar position to sloughflint: we are within a week of signing a nil rate band discretionary trust and are assembling most of our savings to put into it. I am not sure if we will have to pay for any work done so far, as the main reason for our meeting next week is to arrange a new will with a new lawyer (to replace our current mirror will) and hand over the cash for the trust. I hope to cancel all that now.

Our current will leaves everything to each other, and lay down how the survivor's money should be divided between 6 children eventually. These wills were said to be ineffective for IHT, but my understanding is that they have suddenly become effective again, and need not be changed?

There seems to be no further need to set up the trust, and I would much rather have the money available in savings accounts than squirreled away in a complex trust. Is this wise? We are among those whose house is worth much more than we ever expected, and it would be the bulk of our estate.

Tiggs_2

i can see no reason to go ahead with a DWT.

mary

Not sure how I fit in.
Marital home in joint names is worth say £280,000.

Husband's assets:
Half marital home £140,000

My assets:
Half marital home £140,000
Inherited house £250,000
Cash £100,000
Profit on flat I still own so far of £30,000
Total £520,000

Got 6 kids!
Any suggestions?

john1950

Does anyone actually know for sure that this "adjustment" to the Inheritance Tax Band applies to widows and widowers.

If you think that it does will you please give the source on which you are basing your opinion.

My wife died in January 2000. If this does apply to widowers, I cannot find a Government source to corroborate that the new regulations are relevent to me. However there are individuals posting on this site who seem to be suggesting that it may.

This is a matter of significance, so please would anyone thinking that they know for sure disclose their source rather than make patronising posts implying that they are actually in the know when clearly they are just guessing. It is not helpful to try to imply that you have knowledge of a subject when you cannot corroborate what you are saying.

Perhaps we should ask Martin, but he is probably still at Tesco's trying to justify purchasing their "value" lines. It is a bit heavy for him anyway.

localhero

The words of the chancellor -

"To ensure that people who have already lost their husband or wife will also benefit, I will backdate this indefinitely for every widow or widower."

"These changes mean:

* Certainty for up to 12 million married couples, with up to a £600,000 allowance rising to £700,000;
* the same entitlement for 3 million widows and widowers...."

noh

john1950 wrote: »

Does anyone actually know for sure that this "adjustment" to the Inheritance Tax Band applies to widows and widowers.

If you think that it does will you please give the source on which you are basing your opinion.

My wife died in January 2000. If this does apply to widowers, I cannot find a Government source to corroborate that the new regulations are relevent to me. However there are individuals posting on this site who seem to be suggesting that it may.

This is a matter of significance, so please would anyone thinking that they know for sure disclose their source rather than make patronising posts implying that they are actually in the know when clearly they are just guessing. It is not helpful to try to imply that you have knowledge of a subject when you cannot corroborate what you are saying.

Perhaps we should ask Martin, but he is probably still at Tesco's trying to justify purchasing their "value" lines. It is a bit heavy for him anyway.

The complete report is indexed here http://www.hm-treasury.gov.uk/pbr_csr/report/pbr_csr07_repindex.cfm

You want section 5 Paragraph 5.76 and 5.77 of
http://www.hm-treasury.gov.uk/media/B/9/pbr_csr07_chapter5_244.pdf

Nigel

roddydogs

if someone was widowed, say 25 years ago, are they really going to dig into the will to find out weather any was left to children?

Tiggs_2

when you say "dig into" do you mean "read"...because the answer is yes. Its the executors job on the second death to calculate the allowance, if the executors want to skip the "digging" and risk screwing up big time thats their call.

Tiggs_2

mary wrote: »

Not sure how I fit in.
Marital home in joint names is worth say £280,000.

Husband's assets:
Half marital home £140,000

My assets:
Half marital home £140,000
Inherited house £250,000
Cash £100,000
Profit on flat I still own so far of £30,000
Total £520,000

Got 6 kids!
Any suggestions?

yes - have a will leaving all assets to each other and the 2nd death gets £600k - your estate is only worth £660k so you are just £60k over (£24k in tax)

Tiggs_2

john1950 wrote: »

This is a matter of significance, so please would anyone thinking that they know for sure disclose their source rather than make patronising posts implying that they are actually in the know when clearly they are just guessing. It is not helpful to try to imply that you have knowledge of a subject when you cannot corroborate what you are saying.

Thats a bit rich - this is a TAX subject ...... the details where on the HMRC website straight away, as you would expect for a TAX subject.

YOu should be grateful that people who have read and understood it are posting instead of suggesting our knowledge is guessed or implied and that it would be better for Martin to comment when this is far from his field of expertise.



http://www.hmrc.gov.uk/pbr2007/it-nil-rate-band.pdf