Inheritance tax, no will

Speculator

Keep_pedalling said:

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.

I've already prepared a DIY one at freewills.com. It had draft plastered on it but I managed to copy and paste all the wording and printed it. 

Two witnesses are related to my brother in-laws side of the family. They are not beneficiaries so hopefully ok. 

poppystar

https://www.inherit.com.hk/en/hongkongprobatelawyer-howoverseaschineseinheritestateinhongkong/

Seems to say uk Will would be valid once Probate obtained

Speculator

Just one question regarding signatures. I understand that if he can't use his hands, someone else can sign on his behalf. Can this be his son or daughter or one of the witnesses?

Also, does this wording seem right?  5.2 I give my residuary estate to my wife, Mrs .............., absolutely. 

Keep_pedalling

Speculator said:

Just one question regarding signatures. I understand that if he can't use his hands, someone else can sign on his behalf. Can this be his son or daughter or one of the witnesses?

Someone can do this providing the reason is purely physical, the testator still needs the mental capacity to make a will.

https://www.wilsonbrowne.co.uk/news/personal/how-can-you-sign-a-will-if-you-are-physically-unable-to-sign-it/

Also, does this wording seem right?  5.2 I give my residuary estate to my wife, Mrs .............., absolutely. 

The term residuary would suggest there are other beneficiaries is that the case?

Speculator

Keep_pedalling said:

Speculator said:

Just one question regarding signatures. I understand that if he can't use his hands, someone else can sign on his behalf. Can this be his son or daughter or one of the witnesses?

Someone can do this providing the reason is purely physical, the testator still needs the mental capacity to make a will.

https://www.wilsonbrowne.co.uk/news/personal/how-can-you-sign-a-will-if-you-are-physically-unable-to-sign-it/

Also, does this wording seem right?  5.2 I give my residuary estate to my wife, Mrs .............., absolutely. 

The term residuary would suggest there are other beneficiaries is that the case?

5.1 and 5.3

His children are all in their late forties and fifties.

5.1 I gift all my estate not otherwise disposed of by my Will to my executors to use it to pay my debts, legacies, funeral and testamentary expenses and to any legacies declared earlier and all tax payable in respect of my estate, and to divide my residuary estate among the following in the shares specified.

5.3 If my wife predeceases me or fails to obtain a vested interest then instead I give my residuary estate to my children living at my death in equal shares (unless specified differently below) subject to each obtaining the age of 25 years. 

Keep_pedalling

Speculator said:

Keep_pedalling said:

Speculator said:

Just one question regarding signatures. I understand that if he can't use his hands, someone else can sign on his behalf. Can this be his son or daughter or one of the witnesses?

Someone can do this providing the reason is purely physical, the testator still needs the mental capacity to make a will.

https://www.wilsonbrowne.co.uk/news/personal/how-can-you-sign-a-will-if-you-are-physically-unable-to-sign-it/

Also, does this wording seem right?  5.2 I give my residuary estate to my wife, Mrs .............., absolutely. 

The term residuary would suggest there are other beneficiaries is that the case?

5.1 and 5.3

5.1 I gift all my estate not otherwise disposed of by my Will to my executors to use it to pay my debts, legacies, funeral and testamentary expenses and to any legacies declared earlier and all tax payable in respect of my estate, and to divide my residuary estate among the following in the shares specified.

5.3 If my wife predeceases me or fails to obtain a vested interest then instead I give my residuary estate to my children living at my death in equal shares (unless specified differently below) subject to each obtaining the age of 25 years. 

That seems fine.

Speculator

Thanks for all your help and also thanks to poppystar. Very much appreciated.

getmore4less

Foreign property is not exclude from residential nil rate band as long as it meets the qualifying criteria.

Overview

https://www.gov.uk/guidance/check-if-you-can-get-an-additional-inheritance-tax-threshold#homes-that-qualify