IHT & Life Interest Trust

Inadilemma

Hi, My mum passed away over a year ago now and we are still trying to sort out the various taxes etc. Her partner passed away a number of years previously and he had a property put in a 'Life interest trust' that my mum looked after, on her death does the value of that property form part of the estate or was that factored in to her partners estate previously?

Value of overall estate is around 500K of which the 'Life trust' property is 140K

Thanks

getmore4less

Read up on IPDI trusts(and take note of the rule changes in 2006)


Read up on residential nil rate bands.

were they married?
Did the partner use up their nil rate bands?


The assets in trust will most likely be treated as belonging to the life tenant for IHT and CGT purposes

Who were the remaindermen(beneficiaries) of the trusts?
That can be important if the residential nil rate band is needed to cut IHT

Inadilemma

So if a probate reads ‘.....the said estate does not exceed £325’000 and the net value of such estate does not exceed £24,000’ then I’m correct to read that as total value of estate was under 24K? If so then the life interest trust couldn’t be a property?

getmore4less

Inadilemma wrote: »

So if a probate reads ‘.....the said estate does not exceed £325’000 and the net value of such estate does not exceed £24,000’ then I’m correct to read that as total value of estate was under 24K? If so then the life interest trust couldn’t be a property?

Which estate is that for?

he had a property put in a 'Life interest trust' that my mum looked after

when you say looked after was it her main residence or another property maybe rented out?