Reduced rate of inheritance tax

Cazzaloulou68

Afternoon everyone, i am just starting to look at the forms.. the estate has left 5pc to one charity and 5pc to another. So the inheritance tax can be at the 36pc rate. Has anybody filled this in recently and can give me some guidance? There are two executors (myself and brother) only beneficiaries are myself and brother 45pc each and two charities 5pc each. Can someone confirm that as per the forms, we do want to elect to merge the estate components ? The way I’m interpretting it.. we do. Please confirm. Thankyou

Brie

Sorry for your loss - I'm assuming it's a parent if it's you and brother that are beneficiaries.

Is the estate actually subject to IHT?  So many here turn out not to be.  If it's the second of a married couple they have likely inherited their partners taxfree portion (sorry there's a better term for it)

And is there any property being sold?  I've heard that some charities get pretty pushy about getting the very best price to enhance their percentage take so I'd be inclined (if it's possible) to not tell them until things are finalised, but someone else will know the rules better than me. 

Cazzaloulou68

Yes to iht…(Boo)sibling is the deceased.. quite simple estate in theory. 1 house, 1 bank account, premium bonds.. no spouses so just the 325 tax allowance…estimating estate to be worth k640 ish. And I’m not telling the charities until account is finalised!

Marcon

Brie said:

And is there any property being sold?  I've heard that some charities get pretty pushy about getting the very best price to enhance their percentage take so I'd be inclined (if it's possible) to not tell them until things are finalised, but someone else will know the rules better than me. 

The rumour mill seems to have gone into overdrive in the last few weeks, especially on this forum! A shining example of someone going completely OTT: https://forums.moneysavingexpert.com/discussion/6512923/the-disaster-of-a-poorly-written-will#latest

It is for the executors to decide whether or not to accept an offer for a property and, in the absence of any glaring wrongdoing (flogging a 6 bed house in Hampstead for £100K, say), charities don't have the authority - or the resources - to do as you have 'heard'. Some of the larger ones certainly do have some of the sharpest lawyers around, but they are sharp enough to know the limits to what they can do...