Inheritance tax
JackieAnn
Posts: 1 Newbie
I am sorting probate for my sister who died recently. It is likely that her assets might tip over the £325,000 IHT threshold. At the time of her death she was entitled to a share of our mother's estate who died before her. She received a share of the money but there is a residual amount still outstanding from a share of the house which is yet to be sold.
Schedule IHT415 form asks about any legacy - and it's value - the deceased was entitled to but didn't receive before their death or if the deceased was entitled to the remainder of the estate.
Does this mean that even though she died before receiving money from the future sale of the house that this will be included when estimating the value of her estate for inheritance tax purposes.
Schedule IHT415 form asks about any legacy - and it's value - the deceased was entitled to but didn't receive before their death or if the deceased was entitled to the remainder of the estate.
Does this mean that even though she died before receiving money from the future sale of the house that this will be included when estimating the value of her estate for inheritance tax purposes.
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Comments
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How long ago did your mother die? If less than 2yrs then your sister's beneficiaries can sign a deed of variation which will alter (reduce) your sister's entitlement from your mother's estate.
If available that method can be used to reduce your sister's estate to below the IHT Nil Rate Band.0 -
How long ago did your mother die? If less than 2yrs then your sister's beneficiaries can sign a deed of variation which will alter (reduce) your sister's entitlement from your mother's estate.
If available that method can be used to reduce your sister's estate to below the IHT Nil Rate Band.
As far as I am aware the only people who can sign a DoV are the direct beneficiaries of a will and it is to late fir that. Even if it was possible it would mean they give up the entire portion of that bequest rather than 40% of it.0 -
No that's not correct:Keep_pedalling wrote: »As far as I am aware the only people who can sign a DoV are the direct beneficiaries of a will and it is to late fir that. Even if it was possible it would mean they give up the entire portion of that bequest rather than 40% of it.
'The beneficiaries of a person who has died may make a variation that changes that person’s
entitlement from an earlier death. The variation must meet all the conditions above and be made within two years of the date of the earlier death. Again, you should follow the instructions on the top of page 2 of this form, if the variation changes the IHT that is payable.'
https://www.gov.uk/government/publications/inheritance-tax-instrument-of-variation-checklist-iov2
What would happen is that this DOV would redirect the deceased sister's inheritance from her mother direct to the sisters own beneficiaries. No-one would lose out but the money no longer passes through the deceased sister's estate,0 -
No that's not correct:
'The beneficiaries of a person who has died may make a variation that changes that person’s
entitlement from an earlier death. The variation must meet all the conditions above and be made within two years of the date of the earlier death. Again, you should follow the instructions on the top of page 2 of this form, if the variation changes the IHT that is payable.'
https://www.gov.uk/government/publications/inheritance-tax-instrument-of-variation-checklist-iov2
What would happen is that this DOV would redirect the deceased sister's inheritance from her mother direct to the sisters own beneficiaries. No-one would lose out but the money no longer passes through the deceased sister's estate,
Thank you, I stand corrected.0
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