Postby maths » Thu Oct 04, 2018 5:10 pm
Aggregate estate of you and wife 385k plus 220k i.e. 605k. No IHT should arise.
However, if you leave everything on discretionary trust then IHT of 40% x [528k - 325k] i.e. 81,200 arises on your death. No IHT on her death.
Your personal estate amounts to 308k (80% of home) plus 220k other assets.
Total 528k.
If you left everything to wife absolutely (i.e. no trust) then no IHT as inter-spouse exemption applies.On her death no IHT would arise.
You could leave 308k home plus 17k other assets on discretionary trust with 203k other assets to wife absolutely. No IHT arises. On her death her estate would be home 77k (home) plus 203k assets 280k total. No IHT on her death.
Leave wife your 308k in the house absolutely. Settle 220k assets on trust giving her right to the income. No IHT on your death. On her death her estate will be 385k home plus 220k cash i.e. 605k total. No IHT arises.
Difficult to avoid care home costs should wife need to go into a home post your death.
No mention of children/grandchildren?