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Where Taxpayers and Advisers Meet

IHT - Complicated situation!

Reece
Posts: 1
Joined: Wed Aug 06, 2008 3:02 pm

Postby Reece » Thu Feb 20, 2003 12:00 am

Hi,
My Grandma is now in bad health and nearing 95 so we are starting to think about Inheritance Tax. She owned a house in Clapham which was sold last year. The proceeds were split three ways according to my nans will; one third to my dad (£140,000), one to my aunt and one to my nan. My nan lives with my aunt and thus she is the executor for her bank accounts etc so in effect she inherited 2/3's. We now want to know the position regarding tax. Will inheritance tax have to paid even though my nan is still alive, or is there any other for of tax which will be needed to paid. Perhaps there are ways of investing the money so that when the time does come tax can be reduced?

Any help would be greatly appreciated.

Thanks

Clarissa McManus

Ian McTernan CTA
Posts: 1232
Joined: Wed Aug 06, 2008 3:02 pm
Location: Bedford
Contact:

Postby Ian McTernan CTA » Fri Feb 21, 2003 12:00 am

Effectively, the gifts are potentially exempt transfers and rely on the donor living for seven years to avoid IHT on death. If she dies before the expiry of this period then IHT will be payable, and who pays this would depend to some extent on the terms of the Will. You may also be able to purchase insurance against the potential IHT bill.

You need to seek professional advice to minimise potential IHT bills and structure the rest of the estate properly.

I would be happy to quote for the necessary work.

Regards.

Ian McTernan CTA
Managing Director
McTernan Associates Ltd
tel. 020-629-3119
fax. 020-7355-1778
email:ian@imcternan.com
McTernan Associates Ltd
Chartered Tax Advisers
Bedford
Email through link on website:
http://www.imcternan.com


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