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Inheritance tax
Jacqui0803
Posts: 2 Newbie
Hi anyone out there could you please give any INFORMATION Inheritance tax I am single with an estimated 650 k assets including a house my partner of 20 plus years is not on the deeds if I marry him will my threshold go up TO married allowance of 650 instead of 325 and can i still leave my house and assets TO my children to sell on my death in my will and him a percentage of assets when they sell it all thus falling into the higher Inheritance allowance thanks in anticipation to any cleverer peeps than me
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Comments
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There is no married IHT allowance.
Read up on transferable nil rate band.
you also need to look at residential nil rate band.
You also have to consider his assets and what will be happening to those.
you are probably going to need some expert help to get to grips wit he details of what you want to do, but definitely worth getting on top of the basics.
The main issue you have is if you die first is the max you can give away to your kids without IHT will be £425 rising to £500k.
to get round that you will be looking at things like life interest trusts.
will be a lot simpler if you marry the person and they die first unless they also have a load of assets..0 -
Hi thanks for reply you have answered another point I was wondering about the New tax laws that came in in April about the extra 100 k rising to to 500 k by 2020 wow minefield he has no assets at all realy I just thought that by being married you we're allowed more up to 650 k being married as it was classed as two peeps instead of the one person allowance0
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It's up to £650k if you leave that much to your spouse.
Anything you leave to your children doesn't count.
Get proper advice!Signature removed for peace of mind0 -
Jacqui0803 wrote: »Hi thanks for reply you have answered another point I was wondering about the New tax laws that came in in April about the extra 100 k rising to to 500 k by 2020 wow minefield he has no assets at all realy I just thought that by being married you we're allowed more up to 650 k being married as it was classed as two peeps instead of the one person allowance
Under those circumstances marrage would wipe out any IHT liability you have if he dies first. If you die first it would only do so if you were prepaid to leave everything above your nil rate band to him.
How much of your net worth is not tied up in the house? If that is significant then you could reduce the IHT by gifting, along with term insurance to cover dying within 7 years of the gif.0 -
Keep_pedalling wrote: »Under those circumstances marrage would wipe out any IHT liability you have if he dies first. If you die first it would only do so if you were prepaid to leave everything above your nil rate band to him.
How much of your net worth is not tied up in the house? If that is significant then you could reduce the IHT by gifting, along with term insurance to cover dying within 7 years of the gif.
life interest trust would also work but delay the kids getting their money.0 -
The OP must get paid for professional advice from a solicitor and an IHT planning specialist.0
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I completely agree with Yorkshireman here.
I would write out on paper exactly what you want to happen to your assets on your death with the aim of minimising any IHT liability. I would also write out the potential scenarios, ie staying in cohabitation, marrying, you dying before your partner or vice versa, and any or all of your children dying before you.
Having done that I would seek out a recommended solicitor and IHT specialist and take your wishes to them to formulate the best fit.
Personally I would be wary of stipulating fractions or percentages of an estate because this might involve a challenge to a valuation from a beneficiary with costly legal advice and revaluations.0 -
There is no tax on full stops. You can use them, as often as you like, without affecting estate planning.0
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