Inheritance Tax Query

Cardew

Keep_pedalling wrote: »

Bearing in mind you will be able to leave at least £950k tax free between you (£1M if st least one of your survives beyond April 2020) a trust is probably not the route to go down. If you have assets that are likely to take you into IHT territory then you should be looking at gifting some of your more liquid assets to your children in your lifetime.

Exactly.


I cancelled our trust when RNRB was introduced.

getmore4less

ruthieb77 wrote: »

Our wills currently say partner to inherit with the children to inherit upon second death. We are considering changing that to say that the children inherit everything in Trust. Would that be better?

What sort of trust?

If you use a IPDI trust then for tax purposes nothing changes as the values is seen to be owned by the life tenant

It is still protected from asset grabs.

Other trusts can have complications with transferable nil rate band and CGT.

overload99

Our estate wouldn't be worth anywhere near £900k so taking the spousal exemption and RNRB into consideration, I think it's probably best we just stick to owning the property as Joint Tenants. Thanks for all the responses.

Cardew

ruthieb77 wrote: »

Our estate wouldn't be worth anywhere near £900k

You are buying a house for £630k. Presumably with a mortgage protected by life insurance of some kind??


By the time your mortgage is paid off????