Inheritance question

morrit

Hi.

I'm not sure if there is a particular part that deal with inheritance and tax? If so, please can someone direct me and I will repost.

I have a friend (no, really I do).

Her father passed away leaving his assets to his daughter and her half sister (they share the same mother but her father and mother split a few years after she was born and the mother remarried and had another daughter. My friend is the mother and father's daughter). This was 3 years ago. The majority of this time has been waiting for the flat to be sold.

It recently got bought and finalised. I'm not sure if the money is available yet.

She has recently been sent an email regarding an issue and asked me to see what I could find out.

I thought this would be the best place to maybe ask but can't find an inheritance tax thread. Could someone please translate what she needs to do?

I should advise, that their mother suffered a brain hemorrhage several years ago and has lost a significant amount of short term and long term memory.

My friend is a 'stick her head in the sand' type and suffers extreme anxiety. It took a lot of reassuring for me to persuade her to let me ask on here.

The email is as follows :

I have located the second probate file and I see that at a meeting which you had with my former colleague, ******, on 26th May 2017 you informed him that your mother was agreeable to enact the second part of the Will where it was 80% to ***** and 20% to yourself.



However there is absolutely nothing in writing from her to this effect.



Consequently, I would need your mother to confirm in writing that the entitlements she was due under clause 6 of the Will were to be gifted to you and **** as to 20% and 80% respectively.



As no Deed of Disclaimer was signed by your mother within two years of the date of death she will indeed be making a lifetime gift of the net estate for Inheritance Tax purposes.

Yours *****


The estate is worth less than £300k which I belive is the point inheritance tax kicks in.

Their mother is regarded as compus.

From the sounds of it, the mother simply needs to send in a letter agreeing to the will, and my guess is that this gift still needs to be reported to HMRC for tax purposes. Am I correct?

If so, would the solicitors to her fathers estate do this or is this something her mother needs to do herself as they are not acting for her?

I think she is concerned that the same thing is going to happen to me whereby the entire estate gets swallowed despite the circumstances being different (I lost my inheritance to my mother's creditors).

Thank you in advance.

morrit

Found the right thread. Please disregard.