Inheritance Tax

GJL2618

Hi there everyone! 

I have just watched the video about inheritance tax and i think normally my sister and I would be ok and negate the tax. 
My parents have however put their house around £700,000 in a trust. The house can only go to family. Nothing additional takes us over the million inheritance threshold as I understand it. However as its in a trust do you still get the benefits of the hand down allowances. This happened a few years ago and with the changes not sure if we will have to pay it. 
I have looked at Hargreaves for advice and i think it will cost close to £1500.

Can someone give me any advice? As you can tell I am not the most savvy but trying! Thanks in advance

Grumpy_chap

GJL2618 said:

Hi there everyone! 

I have just watched the video about inheritance tax and i think normally my sister and I would be ok and negate the tax. 
My parents have however put their house around £700,000 in a trust. The house can only go to family. Nothing additional takes us over the million inheritance threshold as I understand it. However as its in a trust do you still get the benefits of the hand down allowances. This happened a few years ago and with the changes not sure if we will have to pay it. 
I have looked at Hargreaves for advice and i think it will cost close to £1500.

Can someone give me any advice? As you can tell I am not the most savvy but trying! Thanks in advance

What did the advisor say that put your parent's house into a trust?
What was the objective of putting the house into a trust?

Keep_pedalling

No doubt some slimy sales person charged a big fat fee for setting this up after convincing them that this was a great way to avoid care costs. 

How long ago did they do this? If it was prior to 6th April 2017, then their executors will no longer be able to claim the RNRB as they will have never owned a home since the exemption came in. The house however does still form part of their estates as they have continued to benefit from living in it so IHT would be an issue unless the NRB changes.

Albermarle

My parents have however put their house around £700,000 in a trust.

Normally this is not such a great idea. They cost money to set up and to run each year, and often do not have the desired outcome. Also can cause headaches further down the line.

Normally the main beneficiary is the people who set the trust up .