Re wills and IHT on first death

Snowbelle

Malthusian wrote: »

Charitable gifts are exempt from IHT, same as bequests.

Only if stated in the will. If the executors decide to clear the house of its contents and take it all to the charity shop then a value still has to be declared.

Malthusian

If the house contents have enough value to be declared on the IHT forms then the executors can't take them to the charity shop. They need to be distributed as per the Will. (Unless the Will says to give them to the charity shop, and then it's IHT-exempt as it's a bequest to charity.)

joe134

getmore4less wrote: »

IPDI is the name for life interest trusts created by wills
Often used to protect 1/2 a house from care fees but give the spouse the right to live there.

The rules changed in 2006 to close some loopholes, the Immediate Post death Interest trust remained for people to ring fence assets on first death in a relatively tax efficient way.

google "IPDI trust" more info than you ever wanted.




The IHT tax position does not change at the time you gift(ie. it is a neutral act) they become a PET(potentially exempt transfer) then after 7 years the gift drops off the estate.

That is for gifts that don't have some other exemption like the £3kpy small gift and regular gift...




Do them for each of you going first.
what is does is help you identify the information needed and where to find it.

there are a lot of IHT400 forms but many will not be needed, it will be handy to have the list of what will be needed.

each has a decent set of notes that help and for terms you are not familiar with google helps.

Also if in the future something changes you may remember that it needs another form.

What will be useful is doing things like hunting down for each institution things like their bereavement processes, not so easy when you have just lost a partner.


Another thing I recommend is practising with the HMRC IHT manual.
IT can be really helpful in a lot of cases and often includes examples.

google IHT manual xxxxxxxxx terms.

eg here is the start of the section that covers gifts.
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm14000

Thanks again GM4L, et.al really appreciate this.
Good job I am a bookworm and studying,pity I didn’t start a bit sooner!
I normally read at least 2-3 books a week, looks like a different book for while.:rotfl:
The kindle won’t have much use for a while, except for IHT tombs!
This has certainly been an eye opener for me who likes this kind of thing, and a touch of OCD,doubt the kids will enjoy me trying to tutor them again, all over 50.:)
:beer::beer
EDITed.
Just looking at the manual list of forms is enough to doubt whether I shall be tutoring the kids, it is nowt but forms of forms of forms.
It looks as it’s actually for the taxman to refer to.
Where to start?
Nowt fear but fear itself.��

bowlesbargain

Land_Registry wrote: »

Probate is required when the last surviving registered proprietor dies. The property forms part of the deceased's estate so probate enables the executor(s) to then deal with that estate.

There is no requirement to register the executor(s) when selling. The buyer will rely on for example your death certificate and your widow's probate to confirm the order of deaths.

As an aside it is important to recognise that wills/trusts focus on your beneficial ownerships. The land register deals with your legal ownership. Whilst the former can affect the latter, hence a form A restriction for example might be applied for, there is a clear distinction.

The easiest way I find to describe it is that the legal ownership relates to the land and bricks & mortar. They can't be split/divided into shares so you can't leave say half the land and half the bricks & mortar to each child.

The beneficial ownership however is in the actual value of the land and bricks & mortar. And £s and ps can be split/shared so that following a sale the £300K can be split say 50/50.

For that reason the legal ownership passes to the surviving joint owner and then into his/her estate on death. It is always dealt with as a whole. Hope that helps

I paid off my Mortgage 10 years ago the Solicitor gave me all the documents going back before 1935 when the house was built I cannot find papers saying "Deeds" but I have found " Abstract of Title" this list things going back to 1890!!. Also in the papers are conveyancing papers for everyone who has bought the premises. Should I find anything else in the paperwork. If so what am I looking for. Thanks for your help

getmore4less

You could start with IHT205 and the notes that come with that.

That guides through for the simple estates and has various points where it says sorry you need to use IHT400.

There are quite a few books on the subject local library should have upto date ones.

eskbanker

joe134 wrote: »

Was not thinking of evading tax, (heaven forbid) just avoiding it, which I am sure is quite legal.

Structuring wills in order to distribute estates via legitimate tax-efficient methods is avoidance, and therefore legal.

Trying to manipulate the content/scale/completeness of the estate in order to under-declare its value would be evasion, and therefore illegal.

Your post #47 that I was replying to clearly implied the latter but if your subsequent clarifications mean that it's the former you have in mind then there shouldn't be a problem....

Land_Registry

bowlesbargain wrote: »

I paid off my Mortgage 10 years ago the Solicitor gave me all the documents going back before 1935 when the house was built I cannot find papers saying "Deeds" but I have found " Abstract of Title" this list things going back to 1890!!. Also in the papers are conveyancing papers for everyone who has bought the premises. Should I find anything else in the paperwork. If so what am I looking for. Thanks for your help

The papers you have are I assume the pre-registration ‘Deeds’. Once registered we create a register and title plan, which are the registered ‘Deeds’ and these are held by us electronically.
If you or anyone else want a copy then you can apply for one as and when you want one
You don’t have to hold a copy though

joe134

getmore4less wrote: »

You could start with IHT205 and the notes that come with that.

That guides through for the simple estates and has various points where it says sorry you need to use IHT400.

There are quite a few books on the subject local library should have upto date ones.

Thanks G
I did an exercise last night using IHT205 / 206 just for either of us going first.
Which was my main concern for wife being left to cope.
Then progress to both gone, and kids doing whole estate.
Couldn’t download the actual form s though to view the actual wording etc.
It was in the Gov site on valuing estates.
Is it possible to , clicked on it but nothing happened?

joe134

Land_Registry wrote: »

The papers you have are I assume the pre-registration ‘Deeds’. Once registered we create a register and title plan, which are the registered ‘Deeds’ and these are held by us electronically.
If you or anyone else want a copy then you can apply for one as and when you want one
You don’t have to hold a copy though

Mine are with solicitor, checked the other day and stored electronically with yourselves.
I also have a wad 2inches thick of this of the whole estate , before it was decided up,every owner, coloured drawings of estate, every tree named by type, from way back ages.
All belonging Sir ‘s!’
Very interesting

getmore4less

try
https://www.gov.uk/government/collections/inheritance-tax-forms

pdf versions to print off.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/459092/IHT205_2011_.pdf
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/730619/IHT206-2011.pdf