2 seperate smaller wills or 1 single will.....paying taxes....which is better

gramy1

estate value 850,000....the house and some shares is in my fathers name 50% and my mothers name 50%........in my fathers current will everything goes to my mother and then in her will everything goes to me........it is better to change fathers will so that his 50% goes to me and bypass my mother and then my mothers 50% goes to me in her will.....that way the estate would be passed on to me in 2 smaller amounts and not 1 large amount as in if it went to my mother and then to me in my mothers will.....would that make any difference for tax purposes.....we are updating the wills tomorrow so i thought i would check if this is important.....thanks

Mojisola

Joint wills (one will for two people) are extremely unusual these days.

Your parents each need their own will and the solicitor should be able to talk your parents through the requirements and options.

Your father leaves everything to your mother but she may die before him - that eventuality needs to be covered - as well the possibility that you die before you can inherit from them - who does their estate go to then?

Savvy_Sue

Whoever is drawing up the wills (assuming it is a competent professional) will ask the kinds of questions which will lead to the right answers ... 

gramy1

my parent both have separate wills...my father names my mother....so if my father dies my mothers will  inherit  full amount  then will pass 100% onto me.....i wondered if its better for my father to name me and pass 50% to me then my mother leaves the other 50% to me...thanks

Keep_pedalling

gramy1 said:

my parent both have separate wills...my father names my mother....so if my father dies my mothers will  inherit  full amount  then will pass 100% onto me.....i wondered if its better for my father to name me and pass 50% to me then my mother leaves the other 50% to me...thanks

Why do you think that? 

YBR

I think it's more normal for each spouse to have a will passing everything to their spouse, except if that spouse dies first then the estate passes to their child or children. 

I'm no expert, but I think there is no inheritance tax between someone and their spouse, and the inheritance tax allowances can be passed on so when the widow(er) dies there is a double allowance when the estate comes to you. Get this confirmed wit whoever is drawing up the will.

gramy1

as the only child i wondered if it was better to receive the inheritance 50% from my father when he passes and 50% from my mother when she passes for tax purposes........rather than the whole inheritance in one large amount in will from my mother.....thanks

Marcon

gramy1 said:

as the only child i wondered if it was better to receive the inheritance 50% from my father when he passes and 50% from my mother when she passes for tax purposes........rather than the whole inheritance in one large amount in will from my mother.....thanks

I wonder if you're overlooking the fact that if one parent dies and leaves everything to their spouse (so no IHT due), when the second parent dies they have two nil rate bands (currently £325K each, so £650K) and the value of a property if that then passes to you. 

It may be that your mother dies before your father (hopefully both will be with you for many years yet); the above would still hold good whichever order they die in.

gramy1

hi..thanks...my father will die first.......at moment he will pass everything to my mother then my mother will pass to me....,,,if that is fine i will leave as is and use codicil to remove the solicitors as executors of my fathers will.........i just checking if there was any tax saving if my father passed his 50% direct to me and then my mothers at a later date ...so they would be 2 smaller amounts and not 1 big inheritance...thanks

getmore4less

You can't use a codicil to remove the solicitors from being executors.

Your father needs to do that while he has capacity.

but as said in your other thread they are 25year old wills and a lot has changed since they were written that could mean they need changing as all to spouse then to you is far from optimal if that is how they are structured now.

Savvy_Sue

Especially bear in mind that you cannot possibly know who will die first, even if your father is in poor health.