| Inheritance Tax 12:28 - Jun 26 with 7662 views | Al_Bundy |
Can someone advise if i have a 25% share on a property would i pay any IT? |  | | |  |
| Inheritance Tax on 19:27 - Jun 27 with 1028 views | Joe_bradshaw |
| Inheritance Tax on 16:09 - Jun 27 by sherpajacob |
1) The increase of the value of the house only affects IHT on the 2nd death. The IHt position for the first death is done and dusted. The first death estate has been settled with no IHT to pay. However capital gains tax could be an issue on the subsequent sale of 1/2 of the house that was put into trust on first death.
2) If home ownership is spit in this way in order to mitigate care homes fees, the local authority can simply ignore it and charge the full wack as if the house was still 100% owned.
https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-ca |
Home ownership isn’t split in order to mitigate care home fees. Most house purchases between spouses/partners are joint ownership from the purchase date. If one of them has to go into care the local authority can only use half of the value of the house as an asset of the person needing care. They are assessed separately even if both go into care. If one dies and leaves their half to the other person then the asset of the survivor doubles in value.
Giving half the house to the children (or anyone else) on first death in a will is perfectly legitimate and the local authority can’t do anything about it. Nor should they be able to. |  |
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| Inheritance Tax on 22:01 - Jun 27 with 1002 views | builthjack |
What if an elderly person sells a house, then spends the money. Then needs to go into a home. How long can they go back, and how do they get money if the elderly person has spent it?
I just wondered, as surely they couldn't leave that person suffer by not allowing them into a home? |  |
| Swansea Indepenent Poster Of The Year 2021. Dr P / Mart66 / Roathie / Parlay / E20/ Duffle was 2nd, but he is deluded and thinks in his little twisted brain that he won. Poor sod. We let him win this year, as he has cried for a whole year. His 14 usernames, bless his cotton socks.
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| Inheritance Tax on 11:58 - Jun 28 with 954 views | sherpajacob |
| Inheritance Tax on 19:27 - Jun 27 by Joe_bradshaw |
Home ownership isn’t split in order to mitigate care home fees. Most house purchases between spouses/partners are joint ownership from the purchase date. If one of them has to go into care the local authority can only use half of the value of the house as an asset of the person needing care. They are assessed separately even if both go into care. If one dies and leaves their half to the other person then the asset of the survivor doubles in value.
Giving half the house to the children (or anyone else) on first death in a will is perfectly legitimate and the local authority can’t do anything about it. Nor should they be able to. |
most properties purchased by couples are owned as joint tenants as opposed to tenants in common.
You are allowed to give half your house to your children, nobody is stopping anybody doing it. However if it is done for the specific purpose of avoiding care home fees the local authority can, and do, disregard it.
Like deathbed PET's, You are allowed to give everything away on your deathbed, but it will reduce the IHt bill by the combined total of eff all. |  |
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| Inheritance Tax on 12:06 - Jun 28 with 948 views | Joe_bradshaw |
| Inheritance Tax on 11:58 - Jun 28 by sherpajacob |
most properties purchased by couples are owned as joint tenants as opposed to tenants in common.
You are allowed to give half your house to your children, nobody is stopping anybody doing it. However if it is done for the specific purpose of avoiding care home fees the local authority can, and do, disregard it.
Like deathbed PET's, You are allowed to give everything away on your deathbed, but it will reduce the IHt bill by the combined total of eff all. |
Both my parents and parents in law willed half the family home to the children on first death. This was done many years before any care home fees were likely to be an issue. In my parents’ case they were both in a care home when my father died and his half of the house came to me and my sister. The local authority did nothing. | |
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| Inheritance Tax on 12:48 - Jun 28 with 935 views | sherpajacob |
| Inheritance Tax on 12:06 - Jun 28 by Joe_bradshaw |
Both my parents and parents in law willed half the family home to the children on first death. This was done many years before any care home fees were likely to be an issue. In my parents’ case they were both in a care home when my father died and his half of the house came to me and my sister. The local authority did nothing. |
The key line.
"This was done many years before any care home fees were likely to be an issue".
as I've said, repeatedly, - if it is done with the intention of avoiding care home fees, the local authority can ignore it.
Many people arranged their properties into tenants in common with nil rate band will trusts, and /or lifetime interest in possession trusts for the surviving spouse. as your parents did, when it was legitimate IHT planning, or put in place to protect the interests of children from a previous marriage. It had the additional benefit in respect of care home costs.
I'll post the links again incase people missed them the first time.
https://www.ageuk.org.uk/information-advice/care/paying-for-care/paying-for-a-ca
https://www.ageuk.org.uk/global/Age-Cymru/Factsheets%20and%20information%20guide | |
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