Will writing - query about inheritance tax

[sleepingdragon]

I'm currently updating my will, and have got a bit confused about inheritance tax if I die while my DC are children. For my original will, I'm sure I was advised that if I die before my DC turn 18 their inheritance is automatically put into a Bereaved Children's Trust and is not subject to inheritance tax. When I did this will I was fit and well and so this subject wasn't as significant to me. I have since become unwell, and am likely to die while my DC are under 18 so I want to make sure my will is set up properly.

I am the sole owner of our house, whose value is over the inheritance tax levels. I am hoping the DC can remain living there if I died, but I don't have other assets that could be used to pay an inheritance tax bill.

I am updating my will at the moment, and using a different advisor, who has told me that inheritance tax would be due when I die whatever the age of the DC, so I should be planning for this.

Google tells me that my original advise was correct, and there wouldn't be an inheritance tax bill to pay if I die and leave all my assets to my DC when they are aged under 18. But I don't fully understand what I am reading and don't want to leave my sisters a mess to sort out if I am wrong. We also don't have cash that we can spare to get another opinion/set up a trust for house unless it is really necessary.

Can anyone tell me which advise is correct please? Thanks for your help

Speak to a solicitor. They will know about will trusts and all that stuff, and will be able to advise. If they can't help, then they will point you in the direction of a tax accountant who can.

I am sorry you're in this position.

I would say that it would be worth investing in a lawyer who specializes in Wills, as they will have a more indepth understanding of your situation and the options. Possibly one of the bigger firms, as they have the experts, and you need to be sure this is all watertight.

Property a house cant be held by under 18s if you are leaving everything to your kids if they are under 18 you need to appoint a legal guardian, you can write your will to leave everything to be held in trust to your children. With the executor either a seperate party or the childrens guardian. You need to check with a solicitor as they are best to advise on IHT and implications.

Hi OP, I'm a Willwriter. I'm so sorry that you're going through this.

You were advised correctly the first time. If your children receive their inheritance on their 18th birthdays, no IHT is payable. It would be payable at a much lower rate if they receive it at, say, 21, on a sliding scale between 18 and 25.

IHT is generally due within 6 months of death.

What's the value of your estate?

Is this a serious question?

You have conflicting advice from (we infer) two professionals. The only thing you can do is stop using the second person and find a highly recommended specialist to give you definitive advice.

You have no idea of the qualifications or truthfulness of anyone posting here - they could be lawyers or liars you have no way of knowing.

This is vitally VITALLY important to your children and to you - so go and get some quality professional advice and don't muck about with this trusting or not trusting random internet forum advice.

Hi there

Not a solicitor - but this blog helps explain a bit bereaved children's trust.

This!
I can see on this thread - and throughout MN - people claiming to know what they’re talking about and giving misinformation. You need to get proper advice from a qualified solicitor or a tax professional, not an unqualified will writer. Trusts are subject to periodic and exit inheritance tax charges. Bereaved Minors Trusts are not subject to that same regime. However, the tax treatment of the trust is not the same thing as the inheritance tax liability of an estate.