Hello, I'm Keith and happy to help you with your question.
I regret to have to tell you that you are barking up the wrong tree. There is no Inheritance tax (IT) rate of 35% in Scotland, nor indeed in the UK. Here is the relevant extract from Scottishwills.com:
'Inheritance tax is a form of tax which is payable on an estate when a person dies. The tax itself, which applies at a rate of 40%, is only payable on amounts above the estate tax threshold. The current estate tax threshold is £325,000. Therefore, if your estate is worth more than this amount, inheritance tax will be payable on the balance at the rate of 40%.'
Always remember that the value of all assets world wide are aggregated and subject to IT. This includes his residence and many people forget this item.
You and the other two beneficiaries can enter into a deed to vary the will and charitable bequests do indeed inflate the 325K level at which IT kicks in, but the surplus over that, will still suffer tax at a flat rate of 40%. Whilst by your variation you have reduced the quantum of taxation the rate will still be estate - charitable bequest - 325K @ 40% IT.
There is no problem in executing an amending deed to vary the original save for the cost of preparation. It is your deed, not the deceased, so within reason you can do what you will and as you suggest it may speed up the process and release funds earlier than having to wait for possible problems with the already selected First Scottish.
So sorry to have to rain on your parade regarding IT rates.
Thank you for your reply, dismissing my original premise.
Clearly you are not familiar with
and therefore are the wrong person to have picked up my query.
Unless you would like to dispute that I will have to start again and attempt to find the appropriate expert.
This question you has now essentially moved more towards Inheritance Tax Law and i have asked for a reclassification.
Dear tax Robin
thank you for your opinions which I value .
I would like to come back to my question below
While we have no reason to believe that first Scottish will not get approval there is always that possibility. Would it be prudent to draw up a 2nd D of V, signed and dated 19 January, appointing a different but already approved charity, which we could submit instead to ensure the IHT tax exemption?
Our problem is that all 3 beneficiaries live in different places and getting their signatures is a long, drawn out process . So my question is " Is it permissible to draw up & sign 2 D of V, one allocating the money to First Scottish and another allocating the money to the already approved charity dated the day after? Then, , if first Scottish did not receive approval , we would submit the 2nd D of V .
My question is whether it is legal to set up two different arrangements and wait for events to decided which arrangement we submit to HMRC? And would our lawyer approve?
Look fwd to your opinion
Still waiting for reply to clarification request below
Well, I assumed since you picked up the question that you could answer it in its entirety and not hedged with cant's and wont's. Sorry I cannot give you a better rating .