My wife and i have just changed our house tenancy from joint tenants to tenants in common

Gobsh

My wife and i have just changed our house tenancy from joint tenants to tenants in common, as part of our will to our one and only son, and now we are wondering whether this will affect our inheritance tax allowance??

Keep_pedalling

It should not do so unless your will is poorly drawn up. Presumable both wills create an immediate post death interest trust on the first death, which is the mist tax effective way of doing this.

poseidon1

Gobsh said:

My wife and i have just changed our house tenancy from joint tenants to tenants in common, as part of our will to our one and only son, and now we are wondering whether this will affect our inheritance tax allowance??

If you have severed the joint tenancy in preparation for Wills that create IPDI trusts, then as far as will drafting is concerned,  don't overlooked the guidance provided in the last thread you created on this subject below -

https://forums.moneysavingexpert.com/discussion/6593436/what-happens-to-a-property-trust-should-the-survivor-unilaterally-decide-to-downsize-to-diminish-his#latest

Gobsh

What about our inheritance tax allowance, that is transferred to remaining spouse when the first dies? Would that remain the same irrespective of the changes in tenancy?

poseidon1 said:

Gobsh said:

My wife and i have just changed our house tenancy from joint tenants to tenants in common, as part of our will to our one and only son, and now we are wondering whether this will affect our inheritance tax allowance??

If you have severed the joint tenancy in preparation for Wills that create IPDI trusts, then as far as will drafting is concerned,  don't overlooked the guidance provided in the last thread you created on this subject below -

https://forums.moneysavingexpert.com/discussion/6593436/what-happens-to-a-property-trust-should-the-survivor-unilaterally-decide-to-downsize-to-diminish-his#latest

Keep_pedalling

Gobsh said:

What about our inheritance tax allowance, that is transferred to remaining spouse when the first dies? Would that remain the same irrespective of the changes in tenancy?

poseidon1 said:

Gobsh said:

My wife and i have just changed our house tenancy from joint tenants to tenants in common, as part of our will to our one and only son, and now we are wondering whether this will affect our inheritance tax allowance??

If you have severed the joint tenancy in preparation for Wills that create IPDI trusts, then as far as will drafting is concerned,  don't overlooked the guidance provided in the last thread you created on this subject below -

https://forums.moneysavingexpert.com/discussion/6593436/what-happens-to-a-property-trust-should-the-survivor-unilaterally-decide-to-downsize-to-diminish-his#latest

If you will create an immediate post death interest trust for your spouse then although legal ownership resides with the trust, beneficial ownership sits with the surviving spouse, so the bequest is still covered by spousal exemption, and none of the NRBs are used and can be transfered to the spouses estate. 

poseidon1

Gobsh said:

What about our inheritance tax allowance, that is transferred to remaining spouse when the first dies? Would that remain the same irrespective of the changes in tenancy?

poseidon1 said:

Gobsh said:

My wife and i have just changed our house tenancy from joint tenants to tenants in common, as part of our will to our one and only son, and now we are wondering whether this will affect our inheritance tax allowance??

If you have severed the joint tenancy in preparation for Wills that create IPDI trusts, then as far as will drafting is concerned,  don't overlooked the guidance provided in the last thread you created on this subject below -

https://forums.moneysavingexpert.com/discussion/6593436/what-happens-to-a-property-trust-should-the-survivor-unilaterally-decide-to-downsize-to-diminish-his#latest

That is the whole point of IPDI trusts, is to preserve the transferable nil rate bands passing to the surviving spouse.

However presumeably you are taking appropriate legal advice to ensure each step of your objectives are  executed correctly and will not jeopardise your ultimate plan to eventually pass your joint estates to son, tax efficiently?

It has to be said if you had done nothing at all ( ie retained the joint tenancy) and put in place simple wills leaving estates to each other and then on to son on 2nd death, that would be IHT efficient without the need for intermediate trusts. 

On reflection, I don't think it was ever established why you are going down this particular road.