IHT planning

C_Mababejive

Just spend and enjoy. Cant take it with you . The tax man will steal it away./

Sibbers123

TBC15 wrote: »

If the estate is worth more than 2 million I can still see advantages from an IHT point of view, paperwork if nothing else.

Quick update shouldn’t it be 650,000 plus 125000 out of the house?

To be blunt, with an estate in excess of £2m it would be best advised to use some of your estate to get paid for tailored advice.

IHT is one of the taxes where even basic planning is really effective and can save £,000's in IHT.

But don't put blinkers on. Remember your main objective - i.e. gifting your estate to your brother which should take precedence over saving tax in my opinion.

If you want your wife to enjoy your estate until her death, and then the estate to go to your brother then a life interest trust is probably what you want, giving your wife beneficial interest until her death, and then on her death, the estate will revert to your brother.

P.S. The residential NRB only applies if you leave your property to lineal descendants so unless you have children/step children or grandchildren you will not benefit from this unfortunately.