Can Anyone Give Me Some Up To Date Information Regarding Inheritance Tax Please?

[Stargazer]

I don't want to be directed to a long winded government document but will post three or four straightforward questions in the belief that at least one member will have the correct information. I need to put my affairs in order and want to do the best thing with my property!

[Buenchico]

There's a useful summary here, together with a link to more detailed information on the Gov.uk site:
https://www.ageuk.org.uk/information-advice/money-legal/income-tax/inheritance-tax/

That site isn't paticularly complicated to read. (It's not like the ultra-detailed stuff on the HMRC web pages). Here's the bit about passing on property:
https://www.gov.uk/inheritance-tax/passing-on-home

If you still need advice, ask away. There are several people here who know about IHT.

[Buenchico]

PS: If we're to be able to work out what your tax-free allowance is we'll need to know if you had a spouse (or civil partner) who is now deceased. If so, did that person leave everything to you or was the distribution of their estate more complex?

Also, are you planning on leaving your house to your children (or to your grandchildren) or to someone else?

[Stargazer]

Thank you very much for your answers but I cannot formulate my questions today as it is now 2.07 am 30th December and I have only just opened my laptop having been away all day Saturday !

[Canary42]

I have been through the process Stargazer, and if I can help I will be only too glad to try.

P.S. I rang the local Probate Help Line with one query, and it was obvious they also were baffled by their own documentation, but we sorted it out in the end, so don't despair.

[Peter Pedant]

Have you done basic things like
- - - write a will ?
BuenC was a will-writer so can give you chapter and verse
BUT
if you have that amount of moolah
then you need professional advice from a professional who will of course expect some of your moolah .... ( life and er death being like that )

anyway - quez away !

[Stargazer]

Thank all of you who have posted an answer.
1. I have made a will and it is signed and witnessed.
2. How is the property valued?
3. What if the value is disputed?
4. Who does the valuing?

More questions when I think of them !

[Peter Pedant]

2,3,4 not such a problem as it is SOLD value that is counted for IHT

anyway you get a valuation from an estate agent ( for which you pay ) and disputes are rare. all the cases I have worked they were accepted.by the tax man. I did alot of item valuations and that includes coal in the coal house - every little thing was listed and valued and this was accepted. I particularly enjoyed " five sheets post bombing 1945 era - 25p" - I cant recollect if I included 'spittle covered stuffed teddy bear'

this doesnt really affect you as you will be dead
heirs have to be pretty crazy to say - no the probate value is HIGHER so I have to pay more tax !
someone must have tho
and if they say - hey that is MUCH too much the estate agent is likely to say no it isnt

co heirs do wander around a property with a calculator and snarl "I have only 49.5% and that means HE has 50.5% and that is not fair"
and this occurs quite commonly
but again you will be with the angels
( at the end the judge will say - sell it and divide proceeds by two )

[Stargazer]

This brings me to question
No 5. As my property is unlikely to reach the inheritance tax threshold, is there a deadline for doing Probate? My children are adults and will be in no hurry to sell the house My house will probably be valued at around £350,000 but as I am leaving it solely to my two children the threshold will be £450,000. Is that correct?

[Canary42]

No deadline as far as I know - no inheritance can be released until Probate, so beneficiaries will be looking for timely completion - it's up to the executor.

£450,000 is correct for property.

Useful page from Which? here https://www.which.co.uk/news/2018/04/inheritance-tax-changes-in-april-2018-what-you-need-to-know/

[Buenchico]

If you had a spouse (or civil partner) who is now deceased, and whose IHT allowance was unused (because the whole of their estate was left to you) you get their IHT allowance added onto yours. So that can take your own IHT allowance up to £900,000.

There is no time limit for obtaining probate on the estate of a deceased person. In some cases it can be done very quickly. (My father passed away in mid-October. I'd completed the probate process, and transferred his money to my bank account, by the end of November). In other cases it can take many months, or even years, simply because the executors drag their feet.

[Canary42]

P.S. Make sure the house insurance remains valid - speak to the insurance company about this (I believe there is a period of grace before the Estate needs to take on this responsibility - via the Executor).

[Peter Pedant]

this is quite useful
https://www.ageuk.org.uk/globalassets/age-uk/documents/factsheets/fs14_dealing_with_an_estate_fcs.pdf

the allowance for children will go UP year to year until 2020.

but it looks from what you say - your estate will pass to them without tax payable
(and then the squabbling will begin if they are anything like my family)

[Peter Pedant]

// Inheritance tax for example, is a very important part of attaining probate in the first place and must be done within 6 months of date of death.//

comment on no time limit for probate

I thought there was a clock on it somewhere
and somewhere else it says that IHT has to be settled before probate is granted
( but again you will be smiling beatifically wivda angels whilst all this fol de rol is going on)

[bednobs]

the way i read it PP is that IHT has t be paid within 6 months, not probate granted

[Peter Pedant]

yes I agree