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Where Taxpayers and Advisers Meet

Varying an Estate - Any Tax Implications ?

shaws777
Posts:4
Joined:Wed Dec 26, 2018 8:05 am
Varying an Estate - Any Tax Implications ?

Postby shaws777 » Wed Dec 26, 2018 8:20 am

If a wife applies to vary an estate given to her entirely by a deceased spouse with the law firm holding the will..so that all moveable and immoveable assets go straight to the son and not come into her sphere of ownership, are there any obvious and not so obvious tax implications in doing this given :-

Total assets of husband below IHT threshold.
Immoveable asset will be 50% of principle residence of the husband and wife (no CGT - never been rented to tenants ever)....and the wife will also gift her 50% of the main residence and move out to other accommodation.

I have been an expat overseas nearly 20 years but stayed over the 183 days in 2018 due to taking care of my mother and other admin stuff that took longer than forecast.
I do not own any property in the UK. I guess this tax year 2018-2019 I'm classed as resident for tax purposes in the UK though I'm back overseas again if that matters.

This question comes under Scots Law if that matters. I know children have a claim in Scotland of a percentage of wills left entirely to wives, but my mother is not contesting anything, rather she prefers everything goes to myself so she can see me get the benefit of it while she is alive as long as there is not some hidden giant tax we have not factored in.

Thanks in advance.

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: Varying an Estate - Any Tax Implications ?

Postby AGoodman » Wed Jan 02, 2019 2:15 pm

The main effect is that it may reduce the TNRB available to your mother in her own estate but then her own estate will be reduced by the fact she is not receiving H's estate.

shaws777
Posts:4
Joined:Wed Dec 26, 2018 8:05 am

Re: Varying an Estate - Any Tax Implications ?

Postby shaws777 » Thu Jan 03, 2019 2:44 pm

Yes, both under 325k each of the IHT limits.


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