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INHERITANCE TAX ... TRUST AND ESTATE TAX....

IHT... friend's daughter (12yrs) inherited property & money which was then put into Trust

I have not dealt with IHT or Trust & Estate Tax before...   

My friend daughters inherited everything from her dad in 2012-2014 (he passed in 2012 everything was completed by 2014 and put into a Trust until she is 25yrs old as per his wishes).   I have not been involved from the start...   solicitor & trustees (2) were dealing with everything.   last year they asked me to have a look...    i cannot find any IHT paid in any of the solicitor paperwork...   Is this correct?  He is not replying to me when I ask these specific questions.  I understand there is a annual tax return to complete on behalf of trust income tax SA900 (trust now has 2 properties which are rented out).   

But i am worried no IHT has been paid and might have been due as the threshold was £325k and the death in benefit payout and the property value took total pot to about £425k ish...   Or is there an exemption because all assets and monies were put into a Trust until she is 25?

And the daughter has only had £930 for a school trip...   how is this declared?  Where? 

Thank you 

M

 

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23rd Jan 2018 15:44

Marg99 wrote:

I have not dealt with IHT or Trust & Estate Tax before...


Then why oh why have "they" asked you to "take a look"?

Take a look at what? Past IHT or current income? I would imagine that the solicitor has not heard of you, so why should s/he reply to your queries?

Who were the executors?

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By Marg99
23rd Jan 2018 15:59

thank you for your reply

they are concerned they owe IHT?

Executors are mother and fathers friend. They have questioned solicitor and got no where.

I believe that no IHT is due on property transferred or set up in a Bare Trust (after the settlor death) until she is 25 -- is this correct?

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to Marg99
23rd Jan 2018 16:20

Marg99 wrote:

I believe that no IHT is due on property transferred or set up in a Bare Trust (after the settlor death) until she is 25 -- is this correct?


I really mean no offence, but your comment here betrays such ignorance that your "having a look" isn't helping. The executors are also the trustees, right? If helping is your objective, suggest they engage an accountant. By the sound of it, the estate has been administered, so they'll have estate accounts. It would be useful to provide those to the accountant.
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By Dib
to Tax Dragon
23rd Jan 2018 17:12

Better still, engage a tax adviser, preferably one who has the Society of Trust and Estate Practitioners (STEP) qualification.

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to Marg99
23rd Jan 2018 16:30

And let me add that they should do this quickly, for reasons the accountant will tell them.

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23rd Jan 2018 15:59

Don't know much about IHT but sometimes Insurance payouts don't come into the Estate. Look at "Written in Trust".

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23rd Jan 2018 17:25

Two NRBs?

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25th Jan 2018 23:29

You expect answers when you have no facts?

Not being rude btw.

As you say you don't know about this stuff, best thing is to send them to someone who does.

Tell them to take the paperwork though. I find in most family matters that you have to see the papers as everyones "understanding" of what happened is usually way out of kilter with the facts. It's usually all quite quick to see from the papers. From the family - nigh on impossible!!

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