Here it is.
A client's (son 1) Mother died in 11th December 2011 and Father died 6th May 2012.
The father 3 and half years transfered a freehold shop to son 2 and gave a property to son 1.
The father left in his estate
Property worth circa £250K
Cash worth £200K
I am still awaiting details of his will.
Questions are:
Can the couple's NRB still be transfferred?
What can I do to reduce IHT liability?
Does the 7 year rule apply?
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Replies (2)
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You did not give details of
the values of the PETs the father did 3 1/2 years ago.
No problem with the excess of NRB being transferred.
Any chance the shop was eligible for business property relief?
What about the PETs, any chance of a claim for fall in value relief?
MtF
Get the sequence right
The spouse died first and so the proportion of her unused nil-rate band can be added to the husband who died subsequently. Assuming she had no significant assets (none mentioned?) this increases the survivors nil rate band by 100%.
Reducing the IHT liability depends on what there is and was - did the shop qualify for full BPR? What about the property gifted to the other son. What sequence did these gifts occur in? To provide a coherent answer we need more detail.
Not sure why the 7 year rule is mentioned unless there were earlier gifts still...?