Re wills and IHT on first death

Apodemus

G_M wrote: »

Bank accounts etc get frozen on death, so accessing money for ongoing costs eg maintaining a property and paying IHT is a problem.


But joint accounts do not get frozen......

Paying IHT from the deceased’s bank account is actually quite straightforward. You present the relevant form to the bank with the sum to be paid and they do the transfer to HMRC. Usually very easy, although it is worth following up with HMRC to check that they have properly received it.

joe134

Apodemus wrote: »

Paying IHT from the deceased’s bank account is actually quite straightforward. You present the relevant form to the bank with the sum to be paid and they do the transfer to HMRC. Usually very easy, although it is worth following up with HMRC to check that they have properly received it.

Thanks Apodemus, that,s clarified that point.
That one concerned me.
I am trying to harvest as much info about it so that I can tell wife, and kids, when they become executors, just what is entailed.
There such a lot of intricacies that only being on a forum like this can clarify.
You can see why some people automatically let solicitors do everything, fear of the unknown, at such a bad time as well.
:beer:

bigadaj

Easiest solution is to avoid dying.

bowlesbargain

I am in the same position as the person who posted this. I am trying to give money to Children/Grand Children and fingers crossed I will live seven years and the sum will be free from Tax. But a friend has just died without notice and this does rock you and fix the mind.
I am thinking of changing my will so that the 1st £325,000 from Mine/wife's death goes to the children then they can sort the other partner out when it comes to that but they have got working capital for IHT.
We changed the house some years ago to Tennets in Common so half the house will go to the children on first death.
Not sure if this is the correct course of action but it may help.
Thank you to everyone who posted on this thread it has helped me with a few questions

Snowbelle

joe134 wrote: »

Thanks Apodemus, that,s clarified that point.
That one concerned me.
I am trying to harvest as much info about it so that I can tell wife, and kids, when they become executors, just what is entailed.
There such a lot of intricacies that only being on a forum like this can clarify.
You can see why some people automatically let solicitors do everything, fear of the unknown, at such a bad time as well.
:beer:

Some banks/building societies will allow executors access to funds on production of the death certificate, some require a Statutory Declaration and some Probate. It all depends on the institution and amount - they all have different rules. They should allow payment of IHT and funeral expenses before Probate is obtained.

pip895

G_M wrote: »

Bank accounts etc get frozen on death, so accessing money for ongoing costs eg maintaining a property and paying IHT is a problem.


But joint accounts do not get frozen......

My dads sole account at Lloyds paid out within about a week of the death as did his Santander Account - they just needed the Death certificate and copy of the will..

I believe there may be different rules at different banks - some will release only if the account is under a particular amount - Lloyds might be as much as 50k but I might be miss remembering that. Worth checking what the policy's are at the banks you use. The immediate cash availability was handy for settling bills and funeral expenses etc.

My Dad was very organised so we didn't have to bad a time of sorting probate, but the one thing he missed was a register of gifts which would have been handy. Also the form for proving gifts were given out of income was a bit of a nightmare!

joe134

bowlesbargain wrote: »

I am in the same position as the person who posted this. I am trying to give money to Children/Grand Children and fingers crossed I will live seven years and the sum will be free from Tax. But a friend has just died without notice and this does rock you and fix the mind.
I am thinking of changing my will so that the 1st £325,000 from Mine/wife's death goes to the children then they can sort the other partner out when it comes to that but they have got working capital for IHT.
We changed the house some years ago to Tennets in Common so half the house will go to the children on first death.
Not sure if this is the correct course of action but it may help.
Thank you to everyone who posted on this thread it has helped me with a few questions

would that not make the first transfer of half the property rather more difficult, presuming you got the transfer allowance for IHT purposes ?
As we are both retired, I still have a very good income with pensions etc, my wife has only her SP. plus her £325k.
If I go first my wife, even with some of my pensions she will rely on her £325k, at present,and my similar amount to live off hope fully for a long time, hope fully running down the amount of money, avoiding IHT for the kids.
Both in our late 70’ s.
You are obviously more wise to this than me, and know what you are doing.:)
I don’t see the advantages of going T in C, then, I am not familiar with any of it as both of us have never had to do it before, as most people, we had nowt passed down, make do and mend.
My kids/grandkids/great grandkids don’t think like us, it’s jam today, only speaking of mine,not generalising, but it does seem all my friends kids are of the same mindset.
Perhaps we have got it wrong, and they are right ?:rotfl:
They all call me Armish :-)
We never ever thought we would be in a position where IHT would affect us, just ordinary working people, as you yourself are, it was only the rich who paid it, or not!
But, it creeps up on you when being frugal is inbuilt by being of a different generation.
Even now, we penny pinch, it’s inbuilt, cannot change.
To go and splash out now, just to avoid IHT , goes against our values.
I would imagine their are several ways of avoiding IHT, as the rich do with trusts etc, but we are not all blessed with creative accountants, to do it for them, and even £1mil is not a lot these days, when house is included .
Will check up what our banks do regarding IHT access to a/c’s, more research !
Still not sure how you transfer the property to kids works to get the extra IHT allowance.?
Hope you all the success.:beer:

Snowbelle

joe134 wrote: »

would that not make the first transfer of half the property rather more difficult, presuming you got the transfer allowance for IHT purposes ?
As we are both retired, I still have a very good income with pensions etc, my wife has only her SP. plus her £325k.
If I go first my wife, even with some of my pensions she will rely on her £325k, at present,and my similar amount to live off hope fully for a long time, hope fully running down the amount of money, avoiding IHT for the kids.
Both in our late 70’ s.
You are obviously more wise to this than me, and know what you are doing.:)
I don’t see the advantages of going T in C, then, I am not familiar with any of it as both of us have never had to do it before, as most people, we had nowt passed down, make do and mend.
My kids/grandkids/great grandkids don’t think like us, it’s jam today, only speaking of mine,not generalising, but it does seem all my friends kids are of the same mindset.
Perhaps we have got it wrong, and they are right ?:rotfl:
They all call me Armish :-)
We never ever thought we would be in a position where IHT would affect us, just ordinary working people, as you yourself are, it was only the rich who paid it, or not!
But, it creeps up on you when being frugal is inbuilt by being of a different generation.
Even now, we penny pinch, it’s inbuilt, cannot change.
To go and splash out now, just to avoid IHT , goes against our values.
I would imagine their are several ways of avoiding IHT, as the rich do with trusts etc, but we are not all blessed with creative accountants, to do it for them, and even £1mil is not a lot these days, when house is included .
Will check up what our banks do regarding IHT access to a/c’s, more research !
Still not sure how you transfer the property to kids works to get the extra IHT allowance.?
Hope you all the success.:beer:

If you leave your home to your direct descendants (children, grand-children, great grand-children) on the 2nd death the IHT threshold can be raised by £150,000.

joe134

Snowbelle wrote: »

If you leave your home to your direct descendants (children, grand-children, great grand-children) on the 2nd death the IHT threshold can be raised by £150,000.

Thanks Snowbelle.I believe it goes to £175k next year ?
If this is done, as we want to do, can the children sell it as soon as they have possession of it, out of probate.
Not live in it or rent it.
If so, must their names be registered on the Title register with land reg to do so ?:beer:

Snowbelle

joe134 wrote: »

Thanks Snowbelle.I believe it goes to £175k next year ?
If this is done, as we want to do, can the children sell it as soon as they have possession of it, out of probate.
Not live in it or rent it.
If so, must their names be registered on the Title register with land reg to do so ?:beer:

If you and your wife have mirror wills leaving everything to each other on the first death, and then everything to the children on the second death, then the children can transfer £325,000 from the first death when the second parent dies. They can then raise the threshold by another £150,000 x 2 making £950,000 total. They would then need to get Probate before they can sell the house. I don't believe they need to register their names if they are going to sell it as the solicitor doing the conveyancing would sort this out.