Inheritance, anyone given up or passed on money?

[Comfysock]

Would to hear from people who have done this.

Ive read that you have to get a letter of renunciation via a solictor.

In a nutshell...DF died, the Will stated house to be sold and split between children all named. Probate now granted so house will go on market. Younger brother age 53 lived in property with DF so now has to find somewhere to live. His share wont cover a house. So DSis wants to pass over her share to him or into the pot for him so he has more £££ to help him get a property...however it needs to be done.

Any advice from people who have done this please?

My family is very close knit and we all look out for each other. Be is the baby brother in the family who gave up a vast majority of his life, opportunity to get marriaged etc to look after our very ill DF. Anyway I dont have to justify what and why for some people who have put a sarcastic comment, just popped on for advice. The right thing to do is by deed of variation.

What an awful comment.
I'm sure the person giving away her £70k knows exactly the reason her brother is in the situation he is in and is more than happy to give him her share of £70k or wouldn't be doing it.

DH just inherited 50% share of his mothers house (plus a small amount of cash). He has just done DoV to transfer his share to his nephews. Solicitor advised him to do one other deed, which I cant now remember, but it was to do with Tax implications.
Total cost was around £800, very easy to do, just signing some forms but it took almost 7 months due to back log at Land Registry.

Fuck, you're RUDE!! None of your business.

Very sensible.

With A deed of variation it’s as though your dad left that £70,000 direct to your brother. If your sister gifted the 70,000 without a deed of variation and then died within 7 years, there could be (further) inheritance tax to pay. With a deed of variation this will not be a risk.

Apologies, someone has already answered this!
Not sure how to delete…

Thanks everyone. Solicitor said takes a few weeks to go through hopefully not months as house needs to sell and my Brother needs somewhere to live!

That’s really kind ❤️

I was co-executor of a will recently and two beneficiaries did a DoV in respect of their Dc.

We used a template from the internet, checked it with the info on gov.uk. Made sure it was properly signed and witnessed.

The funds from the house sale went into the Executor bank acct (it was one of our - the executor- bank accounts that we used solely for the expenses and funds relating to the death, funeral, estate etc) , and then paid out to the beneficiaries accordingly.

Ao you van do it online and not via a solicitor?

Yes, the link i gave you explains it all.

Sorry lots of typos in my reply!!

So can anyone confirm....we dont NEED to go to a solicitor?

@Whatevershallidowithmylife @BoudiccaOfSuburbia not sure we can do it as the first section on the Gov site says the following and my DS wants to pass over her share to someone already named in tne will

You can change a will to:

• reduce the amount of Inheritance or Capital Gains Tax payable
• provide for someone who was left out of the will
• move the deceased’s assets into a trust
• clear up any uncertainty over the will

OP, I am not sure what in that link worries you?

If the beneficiary that receives the extra money is a direct descendant the IHT position doesn’t change.

The IHT threshold is £325 with an additional £175 if the main residence of the deceased is left to a direct descendant. So no IHT unless the estate is more than £500k. Added to this if the deceased was married they also have any unused IHT allowance from a spouse who pre deceased them, potentially taking the total IHT allowance to £1m.

It seems from what you have posted that your DSis and the brother she wants to pass her share to are both direct descendants, so there are no IHT issues.

ETA But I am not a lawyer.

Yes not worried about the tax, it was the bit that ssid you can change the will as listed below, bit doesnt say anything about to gifting to someone else just to someone left out of it.

You can change a will to:

• reduce the amount of Inheritance or Capital Gains Tax payable
• provide for someone who was left out of the will
• move the deceased’s assets into a trust
• clear up any uncertainty over the will

Those are just examples. You can change a will to give more to one of the beneficiaries as long as the letter meets the conditions stated in their link. Gov.uk are specific that you don’t need formal Deed, just a signed letter / statement that meets their conditions

https://www.gov.uk/alter-a-will-after-a-death#:~:text=To%20change%20a%20will%20you,6%20months%20of%20making%20it.

https://assets.publishing.service.gov.uk/media/5a7df4d040f0b6230268838d/IOV2.pdf

From what you have said, you can answer ‘no’ to all those questions and just get a signed and witnessed statement saying your DSis is passing her share to her brother, based on example and template letters available on the net.

Thanks for your advice everyone. 😊Change of plan now! DSis has been persuaded by her daughter to take the full amount as she will need it for her old age 🤷‍♀️ 🤷‍♀️🤷‍♀️🤷‍♀️ Apparently her daughter said my sister has had a change of heart but my DSis has told me she wants to give some to brother but her daughter is telling her no. This all came about the last 48 hours when her daughter saw the 'pot' was more than she thought! At the end of the day, it's my DSis decision Im guessing

when i received the majority of my inheritance it first came to me and then within a week or so of receiving it i portioned some out to my children (the grandchildren), zero bank fees.

I don’t think @TheBottomsOfMyTrousersAreRolled intended to be rude. They were simply suggests she considers whether there is financial competence on the part of the DB. However as you said he lost opportunity to progress in his own life to provide vital and appreciated care to the father.

If your sister is still concerned about providing him with a housing solution they might consider some kind of trust so he can live in a property for his lifetime with her percentage eventually going to her own children. However you’d need legal advice on this and also to see if it affect any potential care home situations.

@CurlsnSunshinetime4tea if you gift more than £3,000 dont you or the person...sorry not sure...have to pay tax on that if you take your inheritance if no variation of will/deed has been signed?

@Comfysock im not in the UK. There are no limits on gifting money where I am.

No, there is no IHT on gifts over £3k at the time and possible not at all. The gift is a ‘potentially exempt transfer’ if you survive 7 years it is out side of your estate and actually exempt. No tax to pay.

if you die within 7 years your estate and the gift are less than the available tax free allowances which depending on circumstances is potentially a tax free nil rate band of up to £1m - no tax to pay.

if the gift is more then the available tax allowances then there will be IHT to pay on the excess of £40% by the recipient. If made over 3 years ago the tax payable (not the amount of the gift will be reduced).

If the gift is less than the available allowances but when added to the estate on death the total amount of over the tax free allowances, the gift will use up some of the allowances so there is less for the estate on death.

Hence if your/ her own estate is not likely to be subject to IHT there is no need for the gift to be via DOV (see also my earlier post).

UPDATE
@BoudiccaOfSuburbia can you link me to the templates you used? Did they have to state how much they were passing over?

All change now myself and another family memeber will be giving a good chuck to.the younger brother now (this other family memeber is executor) I told them we can do it ourselves by using a template/letter etc. Cant say how much we will be giving until late father's house sells and how much younger brother will need etc.