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IHT-help please....

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?

Replies

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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

Thanks (1)

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...?

 

Thanks (1)