to pay or not to pay IT

[GOONERLAND]

here is the case .
mother died 15 years ago - house has passed to father who is now legal owner(title transferred only 2/3 years ago - delay due to Fathers PROCRASTINATION)
no other assets and only 1 beneficiary- daughter
the only will in place was made when both parents were alive and it simply passed assets to the remaining spouse and after the death of the 2nd spouse passes to the daughter.
For the sake of this question assume the remaining parent dies , what is the daughters allowance ?
Will she be entitled to the double allowance of both parents approx £650 K OR JUST THE SINGLE?
any help would be much appreciated

[Streetwise]

Re: to pay or not to pay IT

here is the case .
mother died 15 years ago - house has passed to father who is now legal owner(title transferred only 2/3 years ago - delay due to Fathers PROCRASTINATION)
no other assets and only 1 beneficiary- daughter
the only will in place was made when both parents were alive and it simply passed assets to the remaining spouse and after the death of the 2nd spouse passes to the daughter.
For the sake of this question assume the remaining parent dies , what is the daughters allowance ?
Will she be entitled to the double allowance of both parents approx £650 K OR JUST THE SINGLE?
any help would be much appreciated

I would think single.

[GOONERLAND]

Re: to pay or not to pay IT

thanks - i thought as much, can anybody confirm ?
or advise further .

[charitynjw]

Re: to pay or not to pay IT

Worked example from HMRC

http://www.hmrc.gov.uk/inheritancetax/intro/example.htm

[GOONERLAND]

Re: to pay or not to pay IT

thanks again for info..
i suppose the next question would be ..
whats the best way to proceed now and avoid or deuce the IT?

[GOONERLAND]

Re: to pay or not to pay IT

GOOD MORNING EVERY ONE,
my latest advise has been that we can get an allowance of approx £125.000 (AS the first parent died in 1995 the remaining parent will have the current allowance of £325.ooo total=£450.000.
ASSETS are all in family home current value £700.000 .
ANY ADVISE? please

[CleverClogs]

Re: to pay or not to pay IT

ASSETS are all in family home current value £700.000 .

Is that the estate agent value - which is probably overpriced - or an estimate at an auction value?

[GOONERLAND]

Re: to pay or not to pay IT

thats the current average market value of the road.
thanks

[CleverClogs]

Re: to pay or not to pay IT

It probably isn't, as the value of any property is neither more nor less than what a buyer would pay for it.

The Valuation Office Agency (link) may have more realistic data, but a lower estimate would be given as the "guide price" in an auction catalogue.

It should be obvious that, for IT, the value should be as low as possible but there should be some reasoning provided to support the valuation should HMRC object.

On the other hand, you might be eager to pay IT - in which case, your GP should be able to refer you to an appropriate specialist.

[seduraed]

Re: to pay or not to pay IT

I think you need to see a specialist lawer. However my understandingof teh situation isas follows. If the father signs the property over to the daughter and lives seven years then it is exempt from\IT. Another aspect of IT planning might be to get a death benefit insurance policy on her father which is written in trust so that it does not form part of the estate . This means that immediate funds are available to pay the IT as the property cannot be sold until this is paid.

[GOONERLAND]

Re: to pay or not to pay IT

mmm.. got all that thanks.
------------------------------- merged -------------------------------
thanks thats interesting advice - i believe the first option has been 'found out' and poses problems
however the 2nd option is worth looking at. thanks
any specialists out there??