Advice needed on Inheritance / estate planning before i see an FA

aj9648

bobster2 said:

Are your mum and dad married? And do they own their main home as joint tenants?

yes married.  the house is only in his name

aj9648

Keep_pedalling said:

Sorry for so many questions but here are some more

If he died first why would he want his estate to be split between his children rather than the bulk go to your mother? Apart from being unfair it would miss out on spousal exemption leading to a substantial IHT liability.

Does he and your mother have nothing in pensions or ISAs?

Us kids do all the doing for the business and for the home and investment property so most of us know the ins and outs.  My mother would not know how to take money from a cash machine and never been exposed to anything.  So his assumption was we would just divvy it up.

No ISA or pension - its all cash !!! 

RAS

aj9648 said:

Keep_pedalling said:

Sorry for so many questions but here are some more

If he died first why would he want his estate to be split between his children rather than the bulk go to your mother? Apart from being unfair it would miss out on spousal exemption leading to a substantial IHT liability.

Does he and your mother have nothing in pensions or ISAs?

Us kids do all the doing for the business and for the home and investment property so most of us know the ins and outs.  My mother would not know how to take money from a cash machine and never been exposed to anything.  So his assumption was we would just divvy it up.

No ISA or pension - its all cash !!! 

Hopefully you can disabuse him of this idea!!!

The default is mum gets the first £322k and half what's left over once the IHT is paid. There will probably be an IHT bill to pay and the kids share the rest. 

Although the IHT situation depends on how the investment property and business are set up.

And the priority is that he gets the POA done. No need for solicitors to do this. You really don't need a situation where lack of this threatens the business or management of the investment property. You can do this alongside the will advice.

Deputyship (what happens when there is no POA) can take 18 months or more. Meantime you can't touch any of his accounts. So you'd be relying on mum's personal funds to prevent chaos until that is granted, if it was allowed by suppliers, providers etc. 

FlorayG

aj9648 said:

Keep_pedalling said:

Sorry for so many questions but here are some more

If he died first why would he want his estate to be split between his children rather than the bulk go to your mother? Apart from being unfair it would miss out on spousal exemption leading to a substantial IHT liability.

Does he and your mother have nothing in pensions or ISAs?

Us kids do all the doing for the business and for the home and investment property so most of us know the ins and outs.  My mother would not know how to take money from a cash machine and never been exposed to anything.  So his assumption was we would just divvy it up.

I find it difficult to believe someone savvy enough to run a business and save so much money hasn't thought to write a will - it only needs to be simple
My dad left everything to my mom who also had never written a cheque or paid a bill. I helped her with these things after he died and it sounds like that's what you and your siblings will do. Please get him to see a solicitor and get a will written

Keep_pedalling

aj9648 said:

bobster2 said:

Are your mum and dad married? And do they own their main home as joint tenants?

yes married.  the house is only in his names 

aj9648 said:

Keep_pedalling said:

Sorry for so many questions but here are some more

If he died first why would he want his estate to be split between his children rather than the bulk go to your mother? Apart from being unfair it would miss out on spousal exemption leading to a substantial IHT liability.

Does he and your mother have nothing in pensions or ISAs?

Us kids do all the doing for the business and for the home and investment property so most of us know the ins and outs.  My mother would not know how to take money from a cash machine and never been exposed to anything.  So his assumption was we would just divvy it up.

No ISA or pension - it’s all cash !!! 

First step is for them make an urgent appointment with a local solicitor. With the uneven distribution of assets and no wills this could leave your mother in a vulnerable position should your father die or loses mental capacity through illness or accident.

They both need wills and your mother really should be made a joint owner of the marital home. Both of them should also make lasting powers of attorney (that can be done without solicitors). 

They then need to address their savings keeping it all in cash is not a great idea especially with none of it in tax free wrappers. It would probable worth them seeking advice from an independent FA (IFA). 

Savvy_Sue

It is worth noting that as well as LPA for finance and property, and for Health and Welfare, you can also appoint a Business Attorney, to deal purely with the business. https://www.thegazette.co.uk/all-notices/content/101043