Inheritance Tax

p00hsticks

smoothound wrote: »

Thanks for your replies. Sorry to ask but what is DOV and NRB abbreviations for?

DOV = Deed of Variation
NRB = Nil Rate Band

Tom99

smoothound wrote: »

Thanks for your replies. Sorry to ask but what is DOV and NRB abbreviations for?

And RNRB = Residential Nil Rate Band currently £125k, £150k from 4/2019 and £175k from 4/2020.

xylophone

I would say that you need to get probate of your mother's will.

As things stand, you would have a 50% interest in your father's home.

If he were to need care in the future, only the value of his share (plus his other assets) could be taken into account for care home fees.

If the DoV is enacted as suggested so that your father owns the whole of the house, the whole of the value (plus his other assets) would be taken into account.

Of course he may never need care -on the other hand, like my relative's relative, he could find himself paying £55,000 + a year.......

smoothound

Hello Xylophone,

Yes, this is something I need to consider. When my parents reviewed their Will both were in poor health, Mum had Dementia (although at that point was not that bad) and Dad had just been diagnosed with Cancer. We suspected that Dad would go first and eventually Mum may need to go into a home so care costs were on the radar. As it happened Mums health got worse quickly, admitted into hospital and later died in hospital. Dads medication thus far is going well but he may well end up in care although I suspect not but who knows.

So in fairness to the Solicitor the Will she reviewed was to cover both scenarios of care costs and IHT at the time. I think we need to speak to the Solicitor again and review the best way forward

This has all given me some helpful information so thanks to everyone for their input.