Quizzes & Puzzles1 min ago
Question Regarding Inheritance Tax
I was at my sister's today when she mentioned that her husband had not yet done anything about his "estate" and that there would be 40% to be paid before probate would be granted as their house was in his sole name. I was pretty sure (and told her) that there would be nothing to pay if you left everything to your wife. He owns a few houses so his estate would come to more than 2 million pounds but I don't think that would be subject to IT if he leaves it all to his widow.
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https:/ /www.go v.uk/in heritan ce-tax
With an estate of that size he should get something sorted, if only for peace of mind.
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With an estate of that size he should get something sorted, if only for peace of mind.
it's defintely worth seeing a solicitor for an estate of that size, although of course she might predecease him so IHT wouln't be an issue for her. Still, even if there is some IHT to be paid if he dies first (and I'm not sure there will), there should be plenty left over to see her through. But it's worth spending a few hundred pounds for a quick legal overview for peace of mind
Saga say that a spouse or civil patrner can inherit the whole of their spouse/civil partners estate without incurring IHT. This was certainly the case when I lost my husband in 2011 and it still seems to be true. Additonally the IHT free allowance of the deceased spouse is also "inherited" by the survivor so effectively the IHT exempted amount is doubled for the surviving spouse/partners estate. I am not sure if there is any time limit on the doubled allowance thing. https:/ /www.mo neyadvi ceservi ce.org. uk/en/a rticles /gifts- and-exe mptions -from-i nherita nce-tax
er I think he needs to see a solicitor and get things er rectified
at present she inherits under intestacy rules ( which she can look up as it depends on kids etc). they have also reccently changed.
After the tax free limit - which I agree is whackeroo for spouses ( half a million? but he is over that) - the tax is 40%
BUT
with planning this can be reduced sharply
for which you pay (for the advice)
delay here really will cost moolah
"but I don't think that would be subject to IT if he leaves it all to his widow." I agree - by WILL
which he doesnt have at present
but then she has to think of how she is going to leave the stuff she hasnt spent in her long and well deserved widowhood
at present she inherits under intestacy rules ( which she can look up as it depends on kids etc). they have also reccently changed.
After the tax free limit - which I agree is whackeroo for spouses ( half a million? but he is over that) - the tax is 40%
BUT
with planning this can be reduced sharply
for which you pay (for the advice)
delay here really will cost moolah
"but I don't think that would be subject to IT if he leaves it all to his widow." I agree - by WILL
which he doesnt have at present
but then she has to think of how she is going to leave the stuff she hasnt spent in her long and well deserved widowhood