partially disclaiming a gift in a will

StokeHarry

Not selling will stay until   pop my clogs or go into care

RAS

StokeHarry said:

Not selling will stay until   pop my clogs or go into care

In which case it could also be a gift with reservation, so doesn't reduce the IHT payable by your estate.

You really need proper advice on IHT, CGT and the risks you would be exposing yourself and your child to, before you speak to a solicitor.

Keep_pedalling

StokeHarry said:

Deed of Variation Example Draft
Spouse died, tenants in common, want to vary will to gift their half of house to child.
Does anyone have an example of a deed?
Solicitors asking £900 for what appears to be a simple letter.

Are you the originator of this thread with multiple accounts, or are you just posting random stuff on someone else’s thread? If the later please start a separate thread. 

Malthusian

RAS said:

In which case it could also be a gift with reservation, so doesn't reduce the IHT payable by your estate.

StokeHarry is asking about a DOV to redirect the inheritance of the half-share from their late spouse to their child, so it would not be a gift with reservation.

However, there is no clear IHT benefit - quite the opposite. Instead of being IHT-free under the spousal exemption, it would be a taxable transfer and would use up the spouse's nil rate bands and potentially give rise to Inheritance Tax if it was more than £500k (as the RNRB should be available).

If StokeHarry inherited it and gave it to their child, then it would be a gift with reservation.

StokeHarry said:

Not selling will stay until   pop my clogs or go into care

So what do they get from this "gift" that they won't get from inheriting it? (Certainly not an IHT saving, as discussed above.) Other than (potentially) losing first-time buyer status, or having to give half the value of their share away on divorce?

StokeHarry

Wife's share of house £200K so under iht limit no need to contact hmrc?

Malthusian

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

In itself a £200k transfer to either you or your child would not require full details of the estate to be reported, but there are other reasons a full account to HMRC might be needed.

StokeHarry

Thanks for that. I have had advice and I am doing the correct thing for my circumstances. The Govt advice is that a simple letter is all that is needed with a couple of lines from the govt website about IHT and CGT. I just need an example of a draft. There is a generalised one from  Rocket forms but it would be useful if someone could post an example.

tetrarch

This may be what you're looking for:

https://www.accountingweb.co.uk/any-answers/can-i-draw-up-a-simple-deed-of-variation-myself

The idea of paying £900 for a solicitor to give you what is tax advice doesn't sit well with me at all. You need the correct expert giving you appropriate advice

Regards

Tet