Question about IHT400 & 418?

MBenn80

Hi,

I'm doing the probate for my mother's will. The will saw my children given a cash gift. As they are under 18, the gift is to be held in trust by my sister and me (who are also the executors of the will).

There is no IHT to pay but just a couple of things I wanted to check.

1. Do I have to complete IHT400? I found the wroding vague I didn't know if the reference is to gifts being paid into pre-existing trusts or not (if not the estate would be an exempted estate).
2. If I have to complete IHT400, do I have to complete IHT418? This seems to be for pre-existing trusts or would I just be stating that this is an immediate post-death interest? If so, do I need to fill out a form for each trust (i.e. each gift)?

Thank you for any help offered.

 

Keep_pedalling

You don’t give enough information as to whether you need to do an IHT return or not, the gifts to you children have no bearing on whether an IHT return is needed or not this will mainly depend on the value of her estate and her marital status at the time of her death.

Have you taken any advice on the issue of children’s trusts raised in your last thread yet?

https://forums.moneysavingexpert.com/discussion/6515865/money-left-to-under-18s-in-will/p1

MBenn80

Keep_pedalling said:

You don’t give enough information as to whether you need to do an IHT return or not, the gifts to you children have no bearing on whether an IHT return is needed or not this will mainly depend on the value of her estate and her marital status at the time of her death.

Have you taken any advice on the issue of children’s trusts raised in your last thread yet?

https://forums.moneysavingexpert.com/discussion/6515865/money-left-to-under-18s-in-will/p1

The estate counts as an exempted estate as set out here. 

https://www.gov.uk/valuing-estate-of-someone-who-died/check-type-of-estate

The only line that gives me pause is the following:

You’ll need to complete a full account if the deceased:

• gave gifts that were paid into trusts

My initial reading of that line was that we're talking about gifts during the deceased's lifetime that were paid into trusts. However, it could also be read as being money that was gifted in the will to someone, setting up a trust. That's where my confusion comes in.

As for the other thread, I've set up a meeting with a solicitor in the coming weeks and will feed back on what I learn.

Keep_pedalling

Your initial reading is correct, unfortunately the guidance is poorly written.

MBenn80

Keep_pedalling said:

Your initial reading is correct, unfortunately the guidance is poorly written.

This is the problem I've found throughout the process. You think you understand, but read it in another way and it could mean something completely different.