Complicated situation which has the potential to cause a family feud.
DNan passed away a couple of weeks ago. It transpired that I am co-executor of the will with my DF. This was news to me. Will leaves lump sums to DF and me and my siblings. Then remainder of estate to go into a trust which will pay an income to my DF as long as he lives and then is split equally between my siblings when he dies.
So far so good.
DF wants to take legal advice to see whether we can organise a deed of variation so that either we don't set up the trust and split the money now (with him taking a cut as he loses any potential income) or we set up a trust containing less of the estate so that we use the max inheritance tax threshold. Again he would take a cut of this. This is so that a larger proportion of the money would go to us now when our children are little.
The estate is over the inheritance tax threshold. But if DNan intended to set up the trust to avoid inheritance tax, she didn't use the whole of threshold she could have done. She has mainly done this I think to avoid a large part of her inheritance potentially going to my DSM who she didn't get on with. I don't know whether she has had sound legal advice or not.
Now I am very confused about whether trusts incur inheritance tax any way after 10 years, in which case there isn't much to be gained by delaying the inevitable payment.
Also her second husband died a few years ago and I think that she will have gained some of his inheritance tax threshold if he didn't use it all. Is that correct?
Please or to access all these features
Please
or
to access all these features
Mumsnet has not checked the qualifications of anyone posting here. If you have any legal concerns we suggest you consult a solicitor.
Legal matters
Question about will / trusts/ inheritance tax
19 replies
Loueytb3 · 29/04/2013 16:46
OP posts:
Please create an account
To comment on this thread you need to create a Mumsnet account.