Wills and IHT threshold

rosieusa_2

Hi, I am in the process of updating my will due to the amount of IHT my daughter will have to pay.  My assets, include rental property, jewellery and my residential property, amounting to circa £650K.  Do I specifically need to include leaving my home to my daughter in my will in order to increase my IHT allowance from £325k to £500K.  The current wording states "I direct my trustees to pay, convey and make over the residue and remainder of my said means and estate heritable and moveable to my daughter as her own absolute property"    

saajan_12

What needs updating due to IHT? Unless you're going to give the money to someone else eg spouse / charity / via trust instead?

Otherwise its the facts of what is inherited that matters, not how its worded in the will. 

Keep_pedalling

No, and it is usually a bad idea to include specific properties in a will as you may no longer own it by the time you die. If you leave everything to you daughter and you are a home owner then the RNRB can be claimed by your executors. It can also be claimed inter the downsizing rule if you have moved out to a more suitable property such as sheltered housing or residential care.

A will in itself cannot reduced IHT unless you are leaving part of your estate to a charity or political party, so this could be a pointless exercise if your daughter is the main beneficiary in your current will.

rosieusa_2

Thank you, that really helps.   Not sure I'll leave anything to a political party, but most probably will leave some to a charity. 

Keep_pedalling

rosieusa_2 said:

Thank you, that really helps.   Not sure I'll leave anything to a political party, but most probably will leave some to a charity. 

I don’t think many people do