Deed of variation: How long does it take for a deed of variation to be effective?

crislauri

getmore4less said:

What sort of numbers are we talking about.

Is there a house involved  

Do you need the transferable nil rate band to reduce the potential IHT on mothers estate?

what size would the gifts be.


There will be options.

There is a house involved and it's the whole estate is way over the nil rate band.

naedanger

Just to be clear, as asked previously, are the combined estates worth over £1m? 

Keep_pedalling

crislauri said:

getmore4less said:

What sort of numbers are we talking about.

Is there a house involved  

Do you need the transferable nil rate band to reduce the potential IHT on mothers estate?

what size would the gifts be.


There will be options.

There is a house involved and it's the whole estate is way over the nil rate band.

If you want better advice, it would help greatly for you to provide the full picture not just snippets.

crislauri

Keep_pedalling said:

crislauri said:

getmore4less said:

What sort of numbers are we talking about.

Is there a house involved  

Do you need the transferable nil rate band to reduce the potential IHT on mothers estate?

what size would the gifts be.


There will be options.

There is a house involved and it's the whole estate is way over the nil rate band.

If you want better advice, it would help greatly for you to provide the full picture not just snippets.

My father left the house (worth approx 1 Million) to my mother and 355 000 in gifts to the siblings over the last 2-3 years. So the 325 000 nil rate band would be used up for the gifts. Whatever is left over (there is also some cash in the bank) we will want my mother to inherit so we can mitigate the tax and this is what we would want the DOV to do.  Any advice as to why this strategy might not work would be very useful, thanks

Keep_pedalling

crislauri said:

Keep_pedalling said:

crislauri said:

getmore4less said:

What sort of numbers are we talking about.

Is there a house involved  

Do you need the transferable nil rate band to reduce the potential IHT on mothers estate?

what size would the gifts be.


There will be options.

There is a house involved and it's the whole estate is way over the nil rate band.

If you want better advice, it would help greatly for you to provide the full picture not just snippets.

My father left the house (worth approx 1 Million) to my mother and 355 000 in gifts to the siblings over the last 2-3 years. So the 325 000 nil rate band would be used up for the gifts. Whatever is left over (there is also some cash in the bank) we will want my mother to inherit so we can mitigate the tax and this is what we would want the DOV to do.  Any advice as to why this strategy might not work would be very useful, thanks

It will only work in the long run, if your mother actually puts the money to good use and spends it on herself. We have already explained why you can’t simply do the DoV and then have your mother compensate you by gifting the money back to you.

Unfortunately you are still not providing the full picture, how much cash are we talking about?

Does she have any grand children?

naedanger

crislauri said:

Keep_pedalling said:

crislauri said:

getmore4less said:

What sort of numbers are we talking about.

Is there a house involved  

Do you need the transferable nil rate band to reduce the potential IHT on mothers estate?

what size would the gifts be.


There will be options.

There is a house involved and it's the whole estate is way over the nil rate band.

If you want better advice, it would help greatly for you to provide the full picture not just snippets.

My father left the house (worth approx 1 Million) to my mother and 355 000 in gifts to the siblings over the last 2-3 years. So the 325 000 nil rate band would be used up for the gifts. Whatever is left over (there is also some cash in the bank) we will want my mother to inherit so we can mitigate the tax and this is what we would want the DOV to do.  Any advice as to why this strategy might not work would be very useful, thanks

There does seem to be some possibilities e.g. you said on an earlier thread that at least some gifts had been made from a joint account. Also in some circumstances a dov would work e.g. if your mother did not gift the money back to the original beneficiaries. I would have thought given the sums involved it would be worth seeking professional advice.

If you were to diy and get it wrong the consequences could be worse than doing nothing. For example if you pressed ahead with the dov followed a few years later by gifts to the original beneficiaries, and HMRC disallowed the tax benefit from the dov you would find your late father's estate would have to pay tax as though the dov hadn't happened. But the dov itself would still have happened so your mother's estate would still have these extra assets to deal with (compared to not having done the dov at all). And of course I have no idea if HMRC might levy interest or penalties.  I am not saying this would happen but I would be worried it might.