IHT - residence NRB

getmore4less

adonis10 wrote: »

Any more advice?

Get spending and having a good time

adonis10

Tom99 wrote: »

Might the downsizing rules apply? When was the previous house sold, was it on or after 8th July 2015? If the rules apply that may increase the usable RNRB which may be needed if the cash assets exceed £650k

https://www.gov.uk/guidance/how-downsizing-selling-or-gifting-a-home-affects-the-additional-inheritance-tax-threshold#selling-or-giving-away-a-home

Good point, thanks for this. Yes, it was sold in 2018. I like the sound of increasing the RNRB!

adonis10

getmore4less wrote: »

Get spending and having a good time

Ha. Before this, a little bit of planning needed to ensure the government don’t get their grubby little mitts on 50-60k

getmore4less

adonis10 wrote: »

Ha. Before this, a little bit of planning needed to ensure the government don’t get their grubby little mitts on 50-60k

Why?

It makes no difference to her while alive.

She has £650k in cash and a paid for roof over her head get on with the spending.

adonis10

getmore4less wrote: »

Why?

It makes no difference to her while alive.

She has £650k in cash and a paid for roof over her head get on with the spending.

Because she has explicitly stated that she wishes to IHT plan to ensure that the amount of tax is limited as much as possible because she would rather it not to go into the coffers of our inept government. Basically wants to help her family as much as possible as the brexit fiasco will more than likely make them and their future families much worse off.

Keep_pedalling

adonis10 wrote: »

Because she has explicitly stated that she wishes to IHT plan to ensure that the amount of tax is limited as much as possible because she would rather it not to go into the coffers of our inept government. Basically wants to help her family as much as possible as the brexit fiasco will more than likely make them and their future families much worse off.

That is a silly reason not to spend some of your wealth on yourself. Our two main IHT reduction methods are spend and give.

adonis10

Keep_pedalling wrote: »

That is a silly reason not to spend some of your wealth on yourself. Our two main IHT reduction methods are spend and give.

She isn’t not spending on herself for that reason, she just doesn’t tend to spend because she doesn’t want to! Her daughter is always telling her to treat herself but she doesn’t. To be fair, she’s 88, doesn’t smoke or drink, go on holidays, gamble or drive so hasn’t got a great deal to spend it on, hence why she wants to protect it.

Anyway, gone off topic here.

getmore4less

Best thing she can do then is just give it away has no impact on IHT and if she does not pop her clogs for 7 years job done.

Shame she lost a year dithering would have only need 6 more years.

adonis10

getmore4less wrote: »

Best thing she can do then is just give it away has no impact on IHT and if she does not pop her clogs for 7 years job done.

Shame she lost a year dithering would have only need 6 more years.

She doesn’t really want to do that either. Guess she’s on a hiding to nothing as she won’t spend or give much away but also doesn’t want to pay the tax so quite conflicting thoughts, really.

Keep_pedalling

adonis10 wrote: »

She doesn’t really want to do that either. Guess she’s on a hiding to nothing as she won’t spend or give much away but also doesn’t want to pay the tax so quite conflicting thoughts, really.

I can understand a women of that age not splashing out on herself, but considering her attitude to tax, I do not understand her reluctance to gift money. Might be a bit late in life to rely on the 7 year rule but she has nothing to lose by trying as she could live well into her 90s. She should at least make use of her annual allowances, and if her current income exceeds her expenditure then gifts from excessive income might be worth looking at.