IHT Twice?

xylophone

It is up to the exor of your grandmother's estate to administer her will.

He/she will need to have regard to the matters mentioned in my previous.

I have just seen that you are the exor of your mother's will which leaves the family home to her two children.  
The house was formerly in the joint ownership of both parents?

It seems that  your late mother was  the sole beneficiary of your  late father's will - your  late father made no non exempt gifts before he died?
There is no IHT on bequests to a spouse.

Therefore, assuming that  neither your  late mother nor your  late father  made any non exempt gifts in the seven years before death, her estate benefits from the NRB, MNRB and transferable NRB and MNRB.

If  your grandmother's will did create an IPDI,  then it would seem that  your mother did inherit your late father's vested interest in your late grandmother's property. This would be an asset arising from a Trust.

If there is no Trust, then your grandmother's property would now need to be registered in the names of your uncle and his niece and nephew but presumably if the widower has some sort of right (under a claim on the will perhaps?) to stay in the property, then he will be registering a restriction on sale to protect his interest?

It would be as well to take the advice of a STEP solicitor as above.

poppystar

Sappy123 said:

Hi, yes I am executor to my mums estate but not my Nan's. 
Just another thought too, with my brother and I effectively due inheritence from my nans estate through my mum, would this not mean that my Nan's estate is actually part of my mums estate as far we are concerned and therefore subject only to my mums tax free allowance?

You need to step back and see them as three separate estates - nan’s, dad’s, mum’s. It’s probably confusing because they have all died in a short space of time but the order they are dealt with is the same as if there were twenty years between each.

First nan’s with its allowance - personal allowance and any rnrb. This is the job of her executor and what you need from them when dealing with the next two is a figure for what your mother would have inherited. 

Then your father’s which you are executor for and having done that you will then and only then be able to do your mother’s since the value of her estate will be affected by what she inherits from your father too.

Each estate has its own allowance and may have additional for rnrb depending on how the property passes. 

nanapop1977

How far has the administration of your Nan's estate progressed, i.e has probate been granted?

xylophone

Then your father’s which you are executor 

OP does not say that she is exor of her father's estate.

Her response to   

Are you an executor to any of the wills?

was

Hi, yes I am executor to my mums estate 

Perhaps her father named his son or brother as exor.

In respect of her late father's estate, if the family home was owned as joint tenants, it would have passed to her late mother by survivorship.

If as tenants-in common, it would have passed by will as the OP states

My dad's will left everything to my mum.

It is possible that the OP's late father's assets consisted of an amount of cash of a value that permitted his banks etc to pass it to his widow without a grant.

 

poppystar

xylophone said:

Then your father’s which you are executor 

OP does not say that she is exor of her father's estate.

Her response to   

Are you an executor to any of the wills?

was

Hi, yes I am executor to my mums estate 

My dad's will left everything to my mum.

It is possible that the OP's late father's assets consisted of an amount of cash of a value that permitted his banks etc to pass it to his widow without a grant.

 

My misreading over executorship, apologies.

Nonetheless my concern was that the estate of the father was not being considered given OP used ‘twice’ in the thread title and talked about inheriting ‘from nan through mother’ in an earlier response. It may indeed all pass and be joint tenants or not need probate but OP does need to clarify that either as executor of father’s will, if she in fact is, or with father’s executor before dealing with the mother’s estate as executor, surely?

xylophone

 apologies.

Absolutely no need! It was just that it wasn't clear from the OP's earlier posts just who was responsible for executing the wills and I  particularly noticed the OP's response after putting the question   https://forums.moneysavingexpert.com/discussion/comment/77583637/#Comment_77583637

Are you the executor of  any or all three wills?

But yes, clarification is certainly needed, particularly as the OP's first post indicated a degree of misunderstanding of the processes involved. 

If there are indeed three exors involved and they are all somewhat in the dark, professional advice would be helpful, particularly on whether grandma's will creates an IPDI.

Sappy123

Thank you all, sorry for confusion. I am Exor of my mother and fathers estate alongidey brother.
I have decided to reach out and get some professional support in this regard. I don't have the capacity, especially with everything that has gone on, to deal with and ensure Indo not make mistakes is I think it will be money well spent.
I appreciate all your help and support.
Thank you.

poppystar

Sappy123 said:

Thank you all, sorry for confusion. I am Exor of my mother and fathers estate alongidey brother.
I have decided to reach out and get some professional support in this regard. I don't have the capacity, especially with everything that has gone on, to deal with and ensure Indo not make mistakes is I think it will be money well spent.
I appreciate all your help and support.
Thank you.

Probably a sensible move as dealing with so many close deaths over such a short space of time is sure to take its toll. The stress around one death can be hard enough. Hope it all goes well and post again if needed.

getmore4less

one thing you need to be clear of is that as your nans spouse is still alive and has the life interest, your dad and uncle did not inherit anything they became remaindermen of a interest in possession trust.

I think there are some complication on how they work when a remainderman dies, I recall seeing some notes on this buy not having to deal with such a case just made a mental not that should it come up in the future it needs further research.

xylophone

as your nans spouse is still alive and has the life interest,

At all events he has "reserved" a life interest......I am not quite sure what has happened here.

In terms of an IPDI (if one has been created by the will), as far as I understand it, the likelihood is that the interests of the remainder men (the deceased's two sons who were both living  when their mother died) vested on the death of the testator - if so, then the OP's father's interest must have formed part of his death estate - it seems that he left his entire estate to the OP's mother who survived him by 34 days.

The OP's mother then left her entire estate in equal shares between her two children - it seems then that they  would stand in line as remainder men when their late grandmother's husband ( I am assuming a second husband) dies.

If the husband does indeed have the benefit of the IPDI, when he dies, the property will be revalued to the date of death and form part of his death estate for IHT purposes.   His executor will be looking to use his nil rate band,  and any transferable nil rate band from his wife (the OP's grandma).

Because the remainder men were  his late wife's children and  his stepchildren (so count as his direct descendants), as well as his own RNRB , the transferable  RNIB would also be available....... I think...

But the exor of grandma's will should also be taking expert advice?