Hello all,
I'm looking for some advice, please. I am going to consult with a solicitor but I'd like to an idea of how the land lies before that consultation, and to be able to think through what questions I need to be asking, rather than going in dumb.
Dad died 2008. His will contained a discretionary nil-rate trust, which made my mum and the three children trustees. We effectively regarded everything in the estate as mum's, and took nothing from it.
Later that year, my mum started correspondence with a solicitor to wind up the trust (on his advice, to move to the simpler transfer of dad's unused nil-rate band). However, she became critically ill and remained so until the end of last year, when she died. I do have written evidence (letter to solicitor) of her intent to wind up the trust, but doubt that will count for anything.
The trust was never wound up. Her will is a mirror of dad's. The estate is likely to be about 40k over the 325k threshold. I am now unclear whether:
- we're stuffed, and because the trust wasn't wound up we now have to pay IHT on anything over the 325k
- the trust actually still provides the protection it was intended to, and so we won't have to pay any IHT (in which case, why did the original solicitor advise Mum that she had to wind it up).
All a bit confusing for me, and I would really appreciate any insight.
Thanks in advance for any responses.
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