IHT & split Land Registry

getmore4less

Until you have the time line, order of events and transaction type investigating the tax details of things that may not apply could be a waste of time.

Big_Dipper

getmore4less wrote: »

There are things(like a life interest and transferable nil rate band) that can change the tax position.

Back in 2005/6 the typical approach was to offload assets up to the nil rate band as it was not transferable then.


To go forward selling the house they need the death certificate for the brother and the mothers grant, can't see any reason for that to not go ahead.

Unwinding the tax position can be done separately, that delays winding up the mothers estate as the cash needs to be kept in the the estate in case there are bills to pay.

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executor/administrator probate/administration are often use generically

I suspect OP means the other brother was administrator for the deceased brother intestate estate, either by the mother(first in line) stepping aside or POA.

Lets hope this brother has kept records.

Your last point is correct.

I have also come across the term ‘Gift with Reservaion of Benefit’ (GROB). This seems to be the closest thing to what appears to have happened. A tapered IHT would then exist - starting in 2005.The estate may incur 16% IHT (on my bros share for the 5 yrs that elapsed until his death), or it could be free of IHT as my mother (donor) lived for more than the 7 yrs.

The only abnormality being my brother (recipient) died before my mother (donor).

Has anyone had experience of GROB?

Yorkshireman99

Big_Dipper wrote: »

Your last point is correct.

I have also come across the term ‘Gift with Reservaion of Benefit’ (GROB). This seems to be the closest thing to what appears to have happened. A tapered IHT would then exist - starting in 2005.The estate may incur 16% IHT (on my bros share for the 5 yrs that elapsed until his death), or it could be free of IHT as my mother (donor) lived for more than the 7 yrs.

The only abnormality being my brother (recipient) died before my mother (donor).

Has anyone had experience of GROB?

I refer you to my reply #2 that still applies.

Tom99

Big_Dipper wrote: »

I have also come across the term ‘Gift with Reservaion of Benefit’ (GROB). This seems to be the closest thing to what appears to have happened. A tapered IHT would then exist - starting in 2005.The estate may incur 16% IHT (on my bros share for the 5 yrs that elapsed until his death), or it could be free of IHT as my mother (donor) lived for more than the 7 yrs.

The only abnormality being my brother (recipient) died before my mother (donor).

Has anyone had experience of GROB?

[FONT=Verdana, sans-serif]The Gift with Reservation of Benefit rules prevent the 7 yr gift rule being applied not allow it.[/FONT]
[FONT=Verdana, sans-serif]The rule says that the gift should still be treated as part of the death estate even if given away 10yrs ago. But I expect you included the full value of the house in your mother's estate so you have included what was previously gifted to you brother.[/FONT]
[FONT=Verdana, sans-serif]Re the tapering percentage over the 7rs, were this to apply which it does not, it is only gifts over the Nil Rate Band of £325k which are tapered so the 1st £325k of gifts can still be taxed at 40% if the death estate itself is already over £325k[/FONT]