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IHT heads up

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IHT heads up

Postby RogerS » 31 Oct 2018, 12:26

If any of you find yourself in the position of parent A dying before parent B and that the estate can take advantage of transferring the IHT nil rate band from parent A to parent B then here are just a few key pieces of information that you will need. DAMHIKT

Parent A

Date of death
Date of marriage or civil partnership
Place of marriage or civil partnership
Copy of their will (if they left one)
Copy of Grant of representation (ie probate) or if not available copy of death certificate
Copy of any Deed of variation or other similar document executed to change the people who inherited the estate

Parent B

If parent B dies and you don't have the above then life gets tricky to get the double IHT allowance.
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Re: IHT heads up

Postby 9fingers » 31 Oct 2018, 12:34

RogerS wrote:If any of you find yourself in the position of parent A dying before parent B and that the estate can take advantage of transferring the IHT nil rate band from parent A to parent B then here are just a few key pieces of information that you will need. DAMHIKT

Parent A

Date of death
Date of marriage or civil partnership
Place of marriage or civil partnership
Copy of their will (if they left one)
Copy of Grant of representation (ie probate) or if not available copy of death certificate
Copy of any Deed of variation or other similar document executed to change the people who inherited the estate

Parent B

If parent B dies and you don't have the above then life gets tricky to get the double IHT allowance.


As an alternative, would there have been something that could/should have been done on the death of parent A to avoid this hassle do you know?

I don't have any living parents but I'm thinking ahead for my son's benefit if there is anything I or Mrs 9 fingers need to remember to do when the time comes.

Bob
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Re: IHT heads up

Postby RogerS » 31 Oct 2018, 13:41

9fingers wrote:
RogerS wrote:If any of you find yourself in the position of parent A dying before parent B and that the estate can take advantage of transferring the IHT nil rate band from parent A to parent B then here are just a few key pieces of information that you will need. DAMHIKT

Parent A

Date of death
Date of marriage or civil partnership
Place of marriage or civil partnership
Copy of their will (if they left one)
Copy of Grant of representation (ie probate) or if not available copy of death certificate
Copy of any Deed of variation or other similar document executed to change the people who inherited the estate

Parent B

If parent B dies and you don't have the above then life gets tricky to get the double IHT allowance.


As an alternative, would there have been something that could/should have been done on the death of parent A to avoid this hassle do you know?

I don't have any living parents but I'm thinking ahead for my son's benefit if there is anything I or Mrs 9 fingers need to remember to do when the time comes.

Bob


No...the IHT402 form only kicks in after Parent B has died. The key point to take away IMO is that your son has all the information I've listed above.

Keep a record of any money gifted (amount/dates etc) to him as well.
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Re: IHT heads up

Postby 9fingers » 31 Oct 2018, 14:55

Thanks Roger,
I will add the details to my "what you need to do when I'm not here document".

Bob
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Re: IHT heads up

Postby Phil » 03 Nov 2018, 16:46

excuse my ignorance - IHT? :?
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Re: IHT heads up

Postby 9fingers » 03 Nov 2018, 16:56

Inheritance tax or what you might know as death duties

In the uk inheritance between a couple is tax free otherwise the first £325k is exempt and the rest is taxed at 40%
For a couple, the remains of the allowance given on the first death that is unused can be passed to the surviving member of the couple provided you jump through all the hoops that Roger has listed on the second death.
Hth
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Re: IHT heads up

Postby Malc2098 » 03 Nov 2018, 16:56

Inheritance Tax, I think.

Someone was never very good at abbreviations!
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Re: IHT heads up

Postby 9fingers » 03 Nov 2018, 17:16

Malc2098 wrote:Inheritance Tax, I think.

Someone was never very good at abbreviations!


I agree but it seems that most abbreviations tend to be TLAs at least these days
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Re: IHT heads up

Postby Rod » 03 Nov 2018, 17:38

Institute of Highways and Transportation
I was a Member.

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Re: IHT heads up

Postby Malc2098 » 03 Nov 2018, 18:49

Rod wrote:Institute of Highways and Transportation
I was a Member.

Rod


It's now the Chartered Institution of Highways and Transportation!

I'm a member of the other lot!
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Re: IHT heads up

Postby MY63 » 11 Nov 2018, 09:44

Having recently looked after my late Father in laws estate I have some experience I think might be useful.
He had a short unexpected illness an xray for a suspected pulled muscle in his back lead to a terminal cancer diagnosis.
As we had some time we discussed all of his funeral requirements in fine detail I was able to fulfil all of his final wishes bar one, To be honest we thought we had more time.
All of the documents were in one place and were easy to find.
My understanding of IHT is if the first spouse dies and leaves everything to the remaining spouse then any unused portion of the allowance can be carried forward. There is also an allowance for the family home.
I rang the helpline for IHT and they were very helpful.
Being an executor can be stressful but if you take your time it is not too bad.
Expect to get a letter from the DWP pension recovery unit if the person was in receipt of any type of benefit they are also very helpful if you ask.
Some banks and insurers are better than others most having special teams Barclays use an out sourced company (not a good experience).
We had started the process of applying for Power of Attorney both financial and healthcare but we did not have time.

If you want one piece of advice complete the Power of Attorney forms for both financial and healthcare they are simple documents which will only come into force when you are taken ill. It will make things so much easier for those left behind.

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Re: IHT heads up

Postby RogerS » 11 Nov 2018, 10:47

Thanks for posting that, Michael. It reflects my own experiences re financial companies although there is one company who should be wound up as they are so utterly useless and that is Sandander.

Both HMRC and DWP websites (and telephone service) are truly world-beating IMO. You can even do the IHT stuff online now.

Serendipity seated me next to a delightful senior IT lady from HMRC (and before that DWP) on the train from London and we spent an engaging couple of hours talking about systems, systems behaviour, the anathema of stove-pipe thinking and about how HMRC had re-appraised how they used external IT companies for the benefit to us.
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Re: IHT heads up

Postby RogerS » 30 Nov 2018, 11:00

Another tip.

Assume that :

a property is registered with the Land Registry in the name of the last remaining parent who then dies.

their will leaves the property to beneficiaries who decide to sell it

1) There is no need to re-register Title with the Land Registry in the names of the beneficiaries. It will all come out in the wash during the conveyancing.

2) The value of the property will have been given for probate purposes. If the value of the property has risen since then the estate will be subject to Capital gains tax on the uplift. The way around that is to get a Deed of Appropriation (before contracts are exchanged) as this then transfers any Capital Gains to the beneficiaries who can then use their CGT allowance to minimise any liability for the CGT (assuming they've not already used it up, obviously)

Also now, if the estate is straightforward, then probate can be applied for online. You still have to send in the documents - will, codicils, death certificate etc). I did our application in paper format and got Grant of Probate in just under four weeks which is very quick, by all accounts.
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Re: IHT heads up

Postby 9fingers » 30 Nov 2018, 11:09

:text-goodpost:

Thanks Roger

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