Immediate Post Death Interest Trust

Daughter_Dear

I've been searched this forum and online and have a question I hope hasn't already been answered.
My Dad (twice divorced and still alive) is just about to re-write will.  I am his only beneficiary - his IHT allowance due to divorces is £500,000 inc RNRB

I would really like to keep that house and rent it out or live in it rather than sell it. On my death, all my assets will be going to charity (no dependents).  If my co-habiting partner outlives me - my current house (£240,000) will go to him but other than that anything I've inherited from Dad will go to charity (we like a simple life!!)

Question is: if we place Dad's house into an IPDI immediately on his death, and keep it in trust until I die, does that save the IHT, so that it can all go to charity on my death?  

Daughter_Dear

Oops - some information deleted itself as I posted - Dad's house is worth around £800,000

Keep_pedalling

No it won’t, and unless there are other assets to cover the IHT bill (which will be £120k on the house alone) then it is likely you will have to sell it or come up with the money yourself to pay the IHT bill. 

Unless you plan to live in it I can’t really see the point of keeping it, especially with all the hassle and responsibilities that come with being a landlord. There is also the possibility that the house becomes too much for your father, or he requires residential care so the home gets sold before he dies. 

Keep_pedalling

If you don’t want the charities to miss out on the IHT payable on your fathers death, he could always make a new will leaving everything over his NRBs to charity or you could do a deed of variation to achieve the same thing.

Daughter_Dear

Thanks for your reply!  That's really helpful.