Inheritance tax threshold question.

Brie

do you need a solicitor to deal with her estate.  Expensive.  maybe someone else (you?) could deal with it instead.  just an idea.

and assuming she has PoAs in place (DIYd as cost effective £82 each)

Rusty190

Brie said:

do you need a solicitor to deal with her estate.  Expensive.  maybe someone else (you?) could deal with it instead.  just an idea.

and assuming she has PoAs in place (DIYd as cost effective £82 each)

She isn't dead yet @Brie, so her estate is very much hers- and long may it continue!

She has an appointment with the Solicitor to make a new will and her intention is to name me and another relative as executors of her estate in her new will.

She already has us both named as attorneys in her PoA but she is trying to make sure that she leaves everything in good order so that her estate management will not be too onerous, which is what prompted the IHT question.

If things remain as they are now, it seems likely that there will be some IHT to pay, so now her mission is to make sure her executors will be able to have access to enough funds to pay it before interest charges kick in.
She's a pretty astute, wise woman and she has told me today about form IHT 423 so, I'm off to Google that!

RAS

Your relative needs to clarify the rules round IHT and probate. For example many banks allow up to £30k or more to be accessed without probate. And HMRC may agree a payment schedule starting at 10% of the amount owing in order to meet the requirement for a probate application. So a single account with say a 2 month penalty for withdrawals might be sufficient to make a difference?

Don't take my word, advise your relative to take advice from a specialist and to check the limits on accounts.

sheslookinhot

Rusty190 said:

So, is the consensus that anything over £650,000 of her estate, will be subject to inheritance tax?

I don’t see an answer to this question and assume it is referring to moveable assets. Do any knowledgeable people agree with above consensus ?

RAS

Is the estate owner based in Scotland? Moveable assets have a defined legal status there?

Rusty190

RAS said:

Is the estate owner based in Scotland? Moveable assets have a defined legal status there?

No. She's in England.

Olinda99

her allowance wil be her 325k plus his 325k less anything they have given away in the last 7 years (they are allowed 3k a year etc etc)

Secret2ndAccount

Yes, 650k

In England:
her 325k
+his 325k
minus large gifts (7 yr rule)  (zero)
+up to 350k for the house if left to children/grandchildren (zero)