Inheritance Tax?

[Topper]

Hi all

just wondered if there was anyone on forum who has had experience of inheritance tax?

My Mum has been living with my sister for about 2 years now, due to old age and needing help. After 2 years of Mum having an empty house, we decided to sell it.

Mum now wants to split the value of the house between her 3 children so she can see us enjoy the money before she passes on.

So.............. here is the question.

If mum passes away within the next 7 years (god forbid) and the total estate is worth less than £325, 000. Am I correct in saying that we will not have to pay any tax on the monies she would have split between me and my siblings?

I have read 100's of on-line guidance threads, but they are all so criptic and not in laymans terms

any help appreciated

[Six30]

Yeh that is right.. if your dad is alive it would be up to £650,000 .

[Joeman]

Yep, no inheritance tax on that. Take the cash and buy more bikes!

Edit: actually, I'd rent it out, make sure she has a will in place, and in 7+ years it will have doubled in value and generated a nice rental income.

[oldgrump]

Hi, as said before not liable under the £325,000, but there are thing's you might want to think off. Sadly my mum passed away in April this year, so at the moment going though probate, but friends of ours did the same as your family a few years ago, and sold there mums home and split it 3 ways.

But there Mum became very ill to the state that the daughter who cared for her couldn't cope, and she had to go to a care home. So they put her in a council care home, saying she had no capital. Well the council looked into her finances and realised she had given her monies away as a gift. That's when the things get messy, council asked family to take there Mum away, and put her in private care. Well one of the family had already blown his share, and things got, well not nice.

Care homes as you know can be expensive, I know because when my mum went into care in February, I had to sign to say there was £96,000 of private money for 3 years care! before they would take her in. Some care homes in Dorset charge £1700 a week!!!!

Sorry not trying to be negative, and hopefully your mum won't ever need full care, and you as a family you are tight knit.

And make sure you keep a lot of receipts over next 7 years.

[Topper]

Hey guys

many many thanks for the responses.

I will take them all into consideration and discuss them with Family. I believe that if mum makes a gift now and splits the money....................she has to live for 7 years before she could go into care without having to include any of the gift monies, but I am not 100% sure on that one.

Thanks again guys........ much appreciated

[rennie]

I think that the percentage due goes down over the 7 years!

Nobody has ever left me a penny

[Tankbag]

The only thing I inherited was varicose veins

[Picollus]

I don't want to come across as a jerk but I want you to consider getting a free consultation, at least in the first instance, with an accountant that deals with IHT and tax planning. You've got some of the basics right, but there are lots of nuances to this and it's worth getting proper advice.

Remember also, you need to ensure that the gift is classified exactly as a gift not anything else. You will then be able to start using the IHT allowance first and the taper relief will begin to kick in at the various thresholds of time, with the stopwatch kicking off soon as the first bank transfer takes place. It's not too complicated and shouldn't take too much time to get a bit of advice and ensure that a will is in place for any other assets to the estate. Will save you a lot of bother in the long run and hey, if someone with professional indemnity insurance gives you the wrong advice you can always sue their practice further down the line.

Tax is a touchy subject for me given my job, once had a client who hadn't bothered to realise we weren't giving him any tax advice (clearly marked in our terms of engagement) and so he potentially could have ended up paying NI on a capital gain of several million. Heh, oops. Managed to get it fixed but it's the little things that us non tax botherers don't know about which always catch people. Best of luck!

[Six30]

I like to befriend old people.. im working on a nieghbour at the minute, she likes foot massages, which I don't mind , it's strangely arousing ... and she's minted .

[Picollus]

I like to befriend old people.. im working on a nieghbour at the minute, she likes foot massages, which I don't mind , it's strangely arousing ... and she's minted .

 

Why am I not surprised?

[Mawsley]

I like to befriend old people.. im working on a nieghbour at the minute, she likes foot massages, which I don't mind , it's strangely arousing ... and she's minted .

 

I like to dress up as an old woman to entice men into my room...and all old women have lots of mints. If you aren't with me, she's a slut.

[Topper]

I don't want to come across as a jerk but I want you to consider getting a free consultation, at least in the first instance, with an accountant that deals with IHT and tax planning. You've got some of the basics right, but there are lots of nuances to this and it's worth getting proper advice.

Remember also, you need to ensure that the gift is classified exactly as a gift not anything else. You will then be able to start using the IHT allowance first and the taper relief will begin to kick in at the various thresholds of time, with the stopwatch kicking off soon as the first bank transfer takes place. It's not too complicated and shouldn't take too much time to get a bit of advice and ensure that a will is in place for any other assets to the estate. Will save you a lot of bother in the long run and hey, if someone with professional indemnity insurance gives you the wrong advice you can always sue their practice further down the line.

Tax is a touchy subject for me given my job, once had a client who hadn't bothered to realise we weren't giving him any tax advice (clearly marked in our terms of engagement) and so he potentially could have ended up paying NI on a capital gain of several million. Heh, oops. Managed to get it fixed but it's the little things that us non tax botherers don't know about which always catch people. Best of luck!

 

Many thanks for this very important information

[Topper]

I like to befriend old people.. im working on a nieghbour at the minute, she likes foot massages, which I don't mind , it's strangely arousing ... and she's minted .

 

you are a bad man

[NeilM]

I don't want to come across as a jerk but I want you to consider getting a free consultation, at least in the first instance, with an accountant that deals with IHT and tax planning. You've got some of the basics right, but there are lots of nuances to this and it's worth getting proper advice.

Remember also, you need to ensure that the gift is classified exactly as a gift not anything else. You will then be able to start using the IHT allowance first and the taper relief will begin to kick in at the various thresholds of time, with the stopwatch kicking off soon as the first bank transfer takes place. It's not too complicated and shouldn't take too much time to get a bit of advice and ensure that a will is in place for any other assets to the estate. Will save you a lot of bother in the long run and hey, if someone with professional indemnity insurance gives you the wrong advice you can always sue their practice further down the line.

Tax is a touchy subject for me given my job, once had a client who hadn't bothered to realise we weren't giving him any tax advice (clearly marked in our terms of engagement) and so he potentially could have ended up paying NI on a capital gain of several million. Heh, oops. Managed to get it fixed but it's the little things that us non tax botherers don't know about which always catch people. Best of luck!

Too stuff mate.

We are going through it all at the moment .

Father in law died etc

Mother in law still alive.

It's an absolute mine field