Inheritance tax, no will 16 December 2022 at 11:27AM edited 16 December 2022 at 11:27AM in Deaths, funerals & probate 18 replies 637 views

Speculator

My dad is gravely ill in hospital and he has no will.

As I understand it, the rules of intestacy will apply. So my Mum will inherit £270,000 of his assets and half of the remainder. The rest is shared equally between me, my brother and my sister. We prefer all of his assets are given to my mum. I understand we need a deed of variation signed my all the children. If the value of the estate is over £500K, will this be free of inheritance tax if given to my mum?

He does not have property in the UK but has a house overseas.

Keep_pedalling

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Speculator

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Keep_pedalling

Speculator said:

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Hong Kong intestacy rules.

https://conventuslaw.com/report/no-way-no-will-what-you-need-to-know-about-hong/

HK does not have inheritance tax but if his HK estate passing to anyone other than his wife exceeds his NRB (£325k) UK IHT will apply and even if it is below that it will reduce the amount of transferable NRB to his wife’s estate.

You are going to need legal representation in HK to wind up his estate there. 

As he does not own property in the UK his estate cannot use the residential NRB but the allowance is still available to transfer to his wife’s estate if she does.

Speculator

Keep_pedalling said:

Speculator said:

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Hong Kong intestacy rules.

https://conventuslaw.com/report/no-way-no-will-what-you-need-to-know-about-hong/

HK does not have inheritance tax but if his HK estate passing to anyone other than his wife exceeds his NRB (£325k) UK IHT will apply and even if it is below that it will reduce the amount of transferable NRB to his wife’s estate.

You are going to need legal representation in HK to wind up his estate there. 

As he does not own property in the UK his estate cannot use the residential NRB but the allowance is still available to transfer to his wife’s estate if she does.

So no UK inheritance to pay if the HK property is passed on to mum? Mum has no property in the UK.

She has some form of Power of Attorney in  HK so will try to get property transferred to her at a later date.

Keep_pedalling

Speculator said:

Keep_pedalling said:

Speculator said:

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Hong Kong intestacy rules.

https://conventuslaw.com/report/no-way-no-will-what-you-need-to-know-about-hong/

HK does not have inheritance tax but if his HK estate passing to anyone other than his wife exceeds his NRB (£325k) UK IHT will apply and even if it is below that it will reduce the amount of transferable NRB to his wife’s estate.

You are going to need legal representation in HK to wind up his estate there. 

As he does not own property in the UK his estate cannot use the residential NRB but the allowance is still available to transfer to his wife’s estate if she does.

So no UK inheritance to pay if the HK property is passed on to mum? Mum has no property in the UK.

She has some form of Power of Attorney in  HK so will try to get property transferred to her at a later date.

Why would she want to hold on to a property in HK when she does not own her own home in the UK? Unless she is planning on moving there, she would be better off selling up and buying somewhere here. I would not want to risk the house being seized by the CCP, and without her own home in the UK her estate exemption is only £650k rather than £1M.

I suspect rather like the UK any POA she has for her husband in HK ceases when he dies.

Speculator

Keep_pedalling said:

Speculator said:

Keep_pedalling said:

Speculator said:

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Hong Kong intestacy rules.

https://conventuslaw.com/report/no-way-no-will-what-you-need-to-know-about-hong/

HK does not have inheritance tax but if his HK estate passing to anyone other than his wife exceeds his NRB (£325k) UK IHT will apply and even if it is below that it will reduce the amount of transferable NRB to his wife’s estate.

You are going to need legal representation in HK to wind up his estate there. 

As he does not own property in the UK his estate cannot use the residential NRB but the allowance is still available to transfer to his wife’s estate if she does.

So no UK inheritance to pay if the HK property is passed on to mum? Mum has no property in the UK.

She has some form of Power of Attorney in  HK so will try to get property transferred to her at a later date.

Why would she want to hold on to a property in HK when she does not own her own home in the UK? Unless she is planning on moving there, she would be better off selling up and buying somewhere here. I would not want to risk the house being seized by the CCP, and without her own home in the UK her estate exemption is only £650k rather than £1M.

I suspect rather like the UK any POA she has for her husband in HK ceases when he dies.

Yes, she may move back there in the future.

I've asked them and family members before  about  selling  but was told it's a (Ju Auk), a village ancestral home so selling is out of the question.

Speculator

Speculator said:

Keep_pedalling said:

Speculator said:

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Hong Kong intestacy rules.

https://conventuslaw.com/report/no-way-no-will-what-you-need-to-know-about-hong/

HK does not have inheritance tax but if his HK estate passing to anyone other than his wife exceeds his NRB (£325k) UK IHT will apply and even if it is below that it will reduce the amount of transferable NRB to his wife’s estate.

You are going to need legal representation in HK to wind up his estate there. 

As he does not own property in the UK his estate cannot use the residential NRB but the allowance is still available to transfer to his wife’s estate if she does.

So no UK inheritance to pay if the HK property is passed on to mum? Mum has no property in the UK.

She has some form of Power of Attorney in  HK so will try to get property transferred to her at a later date.

I am struggling to understand the Hong Kong intestacy rules. Why can't they use simple English???

Is it basically saying all the assets will go to my mum?

Thanks.

Keep_pedalling

Speculator said:

Speculator said:

Keep_pedalling said:

Speculator said:

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Hong Kong intestacy rules.

https://conventuslaw.com/report/no-way-no-will-what-you-need-to-know-about-hong/

HK does not have inheritance tax but if his HK estate passing to anyone other than his wife exceeds his NRB (£325k) UK IHT will apply and even if it is below that it will reduce the amount of transferable NRB to his wife’s estate.

You are going to need legal representation in HK to wind up his estate there. 

As he does not own property in the UK his estate cannot use the residential NRB but the allowance is still available to transfer to his wife’s estate if she does.

So no UK inheritance to pay if the HK property is passed on to mum? Mum has no property in the UK.

She has some form of Power of Attorney in  HK so will try to get property transferred to her at a later date.

I am struggling to understand the Hong Kong intestacy rules. Why can't they use simple English???

Is it basically saying all the assets will go to my mum?

Thanks.

No, it is saying that she gets the chattels, the first HK$500k plus 50% of the rest. The other 50% goes in trust to the children of the deceased. HK$500k is only about £52k so she will only inherit it all if the property is worth less than that.

Speculator

Keep_pedalling said:

Speculator said:

Speculator said:

Keep_pedalling said:

Speculator said:

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Hong Kong intestacy rules.

https://conventuslaw.com/report/no-way-no-will-what-you-need-to-know-about-hong/

HK does not have inheritance tax but if his HK estate passing to anyone other than his wife exceeds his NRB (£325k) UK IHT will apply and even if it is below that it will reduce the amount of transferable NRB to his wife’s estate.

You are going to need legal representation in HK to wind up his estate there. 

As he does not own property in the UK his estate cannot use the residential NRB but the allowance is still available to transfer to his wife’s estate if she does.

So no UK inheritance to pay if the HK property is passed on to mum? Mum has no property in the UK.

She has some form of Power of Attorney in  HK so will try to get property transferred to her at a later date.

I am struggling to understand the Hong Kong intestacy rules. Why can't they use simple English???

Is it basically saying all the assets will go to my mum?

Thanks.

No, it is saying that she gets the chattels, the first HK$500k plus 50% of the rest. The other 50% goes in trust to the children of the deceased. HK$500k is only about £52k so she will only inherit it all if the property is worth less than that.

Would a simple UK will leaving everything to my mum be valid in HK?

Keep_pedalling

Speculator said:

Keep_pedalling said:

Speculator said:

Speculator said:

Keep_pedalling said:

Speculator said:

Keep_pedalling said:

As far as his UK assets are concerned his estate will be covered by spousal exemption so no IHT. His house overseas will also be covered by this, but may attract some form of tax in that country and a UK DoV may not be valid there. Which county is it located in? 

Hong Kong. It's an  Ancestral home passed on through generations.

Hong Kong intestacy rules.

https://conventuslaw.com/report/no-way-no-will-what-you-need-to-know-about-hong/

HK does not have inheritance tax but if his HK estate passing to anyone other than his wife exceeds his NRB (£325k) UK IHT will apply and even if it is below that it will reduce the amount of transferable NRB to his wife’s estate.

You are going to need legal representation in HK to wind up his estate there. 

As he does not own property in the UK his estate cannot use the residential NRB but the allowance is still available to transfer to his wife’s estate if she does.

So no UK inheritance to pay if the HK property is passed on to mum? Mum has no property in the UK.

She has some form of Power of Attorney in  HK so will try to get property transferred to her at a later date.

I am struggling to understand the Hong Kong intestacy rules. Why can't they use simple English???

Is it basically saying all the assets will go to my mum?

Thanks.

No, it is saying that she gets the chattels, the first HK$500k plus 50% of the rest. The other 50% goes in trust to the children of the deceased. HK$500k is only about £52k so she will only inherit it all if the property is worth less than that.

Would a simple UK will leaving everything to my mum be valid in HK?

I am not sure but it could do, so if he is able it would be worth making a UK will even if it is a DIY one. This will at least avoid the need for a DoV on his UK assets.