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JGM, Solicitor
Category: Law
Satisfied Customers: 12569
Experience:  30 years as a practising solicitor.
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My late mum & dad left mirror Wills with the property being

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My late mum & dad left mirror Wills with the property being owned as Tenants in common with half the property in trust to my brother, sister, and myself and money bequests being left to the grandchildren. Now both have passed, the property is being sold, and proceeds split 3 equal shares. The 3 of us are all
Joint executors of the Wills.
To calculate our IHT could you advise me if the money bequest total
amounts are deducted before or after the inheritance is calculated. Also on reading up on the entitlement of RNRB, does this apply in this situation.
Many thanks
Customer: replied 6 months ago.
Thank you

Thanks for your question. The value of the estate for IHT is calculated by taking the gross estate and deducting debts and funeral expenses. Then the IHT is calculated having regards ***** ***** NRB and RNRB. The IHT is paid. Then the specific monetary legacies are paid. Then the residue is divided. I hope that helps. Please leave a positive rating so that I am credited for my time.

Customer: replied 6 months ago.
basically the estate amount includes the money bequests even though it is stipulated in the will as free from any taxes

What that clause means is that the specific legacies are free from taxes insofar as the beneficiaries receive the money without deduction of tax but the estate has to pay the taxes due on the total amount of estate, less allowable deductions.

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Customer: replied 6 months ago.
Thank you. wuth regard to the RNR. awe we entitled to claim this if half the property was left to us by dad lady year
Customer: replied 6 months ago.
Sorry, trying to write with no glasses.
My siblings are saying about signing a deed of variation to gift back our mums half of the property to us. Will this will this lessen my power is have as joint executor in the will and can they do this without my consent thanks
Customer: replied 6 months ago.
Also, if my sister wants to become administrator, do my brother and myself as other executors have to agree to this, and does the administrator have to swear on oath (an Affidavit) to ensure all beneficiaries will get their inheritance, as she is saying it will all be paid into her personal bank account which I'm not too happy about.

The unused portion of the RNRB can be carried forward. A deed of variation can only be signed with the consent of all of the affected beneficiaries. As regards ***** ***** becoming administrator, an administrator is someone appointed to deal with an estate where there is no will and no executors. That is not the case here and there would appear to be no reason for an administrator.

Customer: replied 6 months ago.
Thank you, ***** ***** have been very helpful. Just one thing to clarify regarding the RNRB can this still be claimed even though dad’s half of house was left in trust to us. That’s the bit I’m confused about as if this stands we will not go over the IHT and a deed of variation will not be necessary. Can you please let me know your advice on the deed of variation as previously asked. Thanks again

The RNRB may be lost where the property is placed into a discretionary trust for the benefit of children. However some trusts will not result in a loss of the allowance. If the trust gives the child an absolute interest in possession in the home the RNRB can still be claimed. A Bereaved Minor Trust, an 18 to 25 Trust and Disabled Persons Trust will also retain the RNRB.

Customer: replied 6 months ago.
Thanks again. Sorry to appear a bit naive, but just want to get it straight before I attend the Solicitors dealing with this with my siblings. So if mum still owned half of the house on her death which is left to us 3, can we just use the RNRB on her half of the property I.e half of the value

Yes you can. And you should ask what kind of trust the other half is held in as that will make the tax position clearer.

Customer: replied 6 months ago.
Thank you so much - very much appreciated. Feel a whole lot better now