Gifting - what counts as gifts out of income and what doesn't!?

RociCap

Keep_pedalling said:

Don’t to forget to subtract funeral costs from the estate, which could well bring the total below the NRB.

Spousal exemption for IHT was only introduced in Dec 1974 and as your grandfather died before then it will be difficult to show any transferable NRB if you don’t have any records. The NRB was only around £15k then Anything he left to your grandmother would have used up some of that exemption so if probate was not applied for, which is often the case with a first death,  then it is going to be a difficult task to come up with the actual transferable amount, so it will be easier to use her RNRD exemption if you actually need it.

Ah apologies - he died in December 1983, so there was spousal exemption.  This from gov.uk:

From 22 March 1972 to 12 November 1974 spouse exemption was limited to £15,000, charitable exemption to £50,000. From then on, the exemption for spouses who died domiciled in the UK was unlimited.

Assuming he didn't use any of his nil rate band then (as it wasn't available and therefore qualifies for 100% as per the gov advice above), I think we're good!

Keep_pedalling

RociCap said:

Keep_pedalling said:

Don’t to forget to subtract funeral costs from the estate, which could well bring the total below the NRB.

Spousal exemption for IHT was only introduced in Dec 1974 and as your grandfather died before then it will be difficult to show any transferable NRB if you don’t have any records. The NRB was only around £15k then Anything he left to your grandmother would have used up some of that exemption so if probate was not applied for, which is often the case with a first death,  then it is going to be a difficult task to come up with the actual transferable amount, so it will be easier to use her RNRD exemption if you actually need it.

Ah apologies - he died in December 1983, so there was spousal exemption.  This from gov.uk:

From 22 March 1972 to 12 November 1974 spouse exemption was limited to £15,000, charitable exemption to £50,000. From then on, the exemption for spouses who died domiciled in the UK was unlimited.

Assuming he didn't use any of his nil rate band then (as it wasn't available and therefore qualifies for 100% as per the gov advice above), I think we're good!

No, the apology is all mine senior moment with the dates. 

theoretica

I think there may be a bit of a muddle between the NRB - the general nil rate band currently £325k each and the RNRB - the additional residential band currently another £175k.

You can probably claim either - or both - of your grandmother's RNRB or your grandfather's NRB.  Both might be overkill, but would take this estate far our of the borderline of being taxable.  You could also investigate your grandfather's RNRB - but that seems definitely overkill.

RociCap

theoretica said:

I think there may be a bit of a muddle between the NRB - the general nil rate band currently £325k each and the RNRB - the additional residential band currently another £175k.

You can probably claim either - or both - of your grandmother's RNRB or your grandfather's NRB.  Both might be overkill, but would take this estate far our of the borderline of being taxable.  You could also investigate your grandfather's RNRB - but that seems definitely overkill.

Ah, yes, you're absolutely right - I was mixing the two up in my head into one thing!

Definitely won't need to claim his RNRB as well.

It seems not to matter what the nil rate band was when *he* died (as long as he didn't use any of it, which I assume he didn't as everything passed to my grandmother as his spouse, and his estate was 'Not exceeding £40000' when the nil rate band at the time was £60,000), but what it was when my grandma died - is that right?

theoretica

RociCap said:

theoretica said:

I think there may be a bit of a muddle between the NRB - the general nil rate band currently £325k each and the RNRB - the additional residential band currently another £175k.

You can probably claim either - or both - of your grandmother's RNRB or your grandfather's NRB.  Both might be overkill, but would take this estate far our of the borderline of being taxable.  You could also investigate your grandfather's RNRB - but that seems definitely overkill.

Ah, yes, you're absolutely right - I was mixing the two up in my head into one thing!

Definitely won't need to claim his RNRB as well.

It seems not to matter what the nil rate band was when *he* died (as long as he didn't use any of it, which I assume he didn't as everything passed to my grandmother as his spouse, and his estate was 'Not exceeding £40000' when the nil rate band at the time was £60,000), but what it was when my grandma died - is that right?

I am not an expert, but think that is right.