What does this phrase mean in easy english please?

royP_2

What does this phrase mean in easy english please?

I give the maximum amount that can be given by this will without inheritance tax becoming payable in respect of the gift to be divided equally between Mr AB and Mr XY.

Keep_pedalling

It means Mr AB and Mr XY gets £325K between them. Who else inherits? 

royP_2

Thanks for reply, much appreciated.
Balance goes to various charities.

Notepad_Phil

Keep_pedalling said:

It means Mr AB and Mr XY gets £325K between them. Who else inherits? 

Wouldn't the amount depend on the estate - assuming the two people are not direct descendents then if there had been a spouse then couldn't it potentially be up to £650k before any inheritance tax would be payable, or alternatively if there had been gifts paid out that were still within the 7 years rules then couldn't it be less than £325k?

Marcon

royP_2 said:

Thanks for reply, much appreciated.
Balance goes to various charities.

Not that simple I'm afraid... Much more info needed before an accurate reply can be given.

Voyager2002

Notepad_Phil said:

Keep_pedalling said:

It means Mr AB and Mr XY gets £325K between them. Who else inherits? 

Wouldn't the amount depend on the estate - assuming the two people are not direct descendents then if there had been a spouse then couldn't it potentially be up to £650k before any inheritance tax would be payable, or alternatively if there had been gifts paid out that were still within the 7 years rules then couldn't it be less than £325k?

Agreed: it is complicated, and the tax thresholds may well change between the date on which the will is made and the date of death. So the executor is tasked with calculating the maximum value of the estate before IHT becomes payable, and then giving anything above this figure to the named charities.

Marcon

Seems to be a question OP asks annually:

https://forums.moneysavingexpert.com/discussion/6542213/inheritance-tax#latest

https://forums.moneysavingexpert.com/discussion/6542213/inheritance-tax#latest

Maybe better if they took professional advice...?

Olinda99

on death, you work out your inheritance tax-free allowance. This will depend on lots of things - the IHT tax band(s) at that time, any gifts in previous 7 years, any spousal allowance carried forward, any applicable direct descendent relief etc.

The meaning is very clear