Caught by the trap of non-transferable IHT Allowance?

Is it possible your spouse died before 1984 and their estates attracted death duties because the value exceeded the limits in force at the time.

Are you under the impression the transferable IHT nil rate band and residential nil rate band are available allowances and can be applied to your own estate?

If any tax was paid on first death under the Estate Duty or Capital Transfer Tax rules, then the nil rate band available at that time would have been used and and no transferrable allowances are available to apply to the survivor’s Estate. This may result in a higher IHT bill than expected on the death of the survivor.

It is advisable to review the value of your assets, and revisit your Wills to ensure they reflect your current wishes, taking into account the personal circumstances of your intended beneficiaries. Making some lifetime gifts to individuals or via trust arrangements and taking advantage of IHT exemptions may result in a lower IHT charge on your estate. Trust arrangements can add a level of protection, and at the same time enable you to retain some control. Establishing whether one or both transferrable IHT allowances will apply will also influence the decisions you make.

Please contact Alison Houghton, who is happy to discuss Estate Planning with you and provide you with a report and suggested solutions for you to consider.