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J.Ustinovskaya
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I think I need to speak with a solicitor about inheritance

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I think I need to speak with a solicitor about inheritance tax and trust funds?
JA: Since estate law varies from place to place, can you tell me where this is?
Customer: I live in Telford, Shropshire, U.K.
JA: What documents or supporting evidence do you have?
Customer: It is not so much about the documents I have but about my step father who is about to receive a gifted portion of a company that he once owned and we need to know that if something happened to my father before the 7 years how much inheritance tax would I have to pay? Or would it be better to divide the sum of £309,00 into 3 amounts: to my step-father, my myself and his granddaughter?
JA: Is there anything else the Lawyer should know before I connect you? Rest assured that they'll be able to help you.
Customer: I want to ask them about my step-fathers estate as a whole as the house has been valid at £360,000, and then he part owns a third of 8 acres along with his 2 nephews which is going to be developed into a nursing home as well as this amount of £309,000 to be paid to my step father next week.
Customer: replied 18 days ago.
File attached (2QGV35V)
Customer: replied 18 days ago.
How long will it take to get a reply to my question?

Dear Client, thank you for your query. My name is***** am a solicitor and will be assisting you today. I endeavour to provide you with the answer within an hour.

Customer: replied 18 days ago.
Hi Julia, thank you for your reply, I will wait for your answer, in the meantime do you need any further information from me?
Customer: replied 18 days ago.
Initially Julia I prefer to chat with you through text messages but if it becomes complex then I will request a telephone call with you.

The total value of your stepfather's estate would be £309,000 plus £360,000 plus the value of his part of 8 acres.

As for the house, there is a residence tax nil rate band, which is currently £175,000. If he inherited the house from your direct ancestor who did not use his/her residence nil band, then the amount of £175,000 can be doubled for you and the total of £350,000 will be deducted from the value of the house for inheritance tax purposes. The condition, however, is that the house is passed on to your stepfather’s lineal descendant (like you or your child).

In addition, a deduction of nil rate band of £325,000 will be made from the value of the whole estate. So, the total deduction you will have is either £500,000 or £675,000, depending on how your father inherited the house.

To answer if his part of 8 acres will be taxable, please specify if he owns it with nephews jointly or in common? If jointly, his part will automatically pass on to nephews upon his death, if in common, this property is taxable and you need to add the value of it to the value of the house £360,000 plus cash £309,000. Then you will need to deduct either £500,000 or £675,000 and the tax will be 40 % on the remainder. It may be paid in 10 instalments.

Hope this helps. Please feel free to ask further questions.

Customer: replied 18 days ago.
Thank you Julia, my step father inherited his house and land from his father. The 8 acres is owned 3 ways: my step father a third and then his 2 nephews the rest divided equally but if my step father dies he has left his third of the 8 acres to me so I presume the value of this third of land together with the house and the £309,000 would come to me on my step fathers death and then I would have to deduct £500,000/£675,000? And then pay 40% on the rest is this correct?
Is there any way my step father can have the £309,000 paid into a trust fund for me and another for my daughter to avoid tax?My next question will sound strange but as I have never been adopted legally by my step father but I had my surname changed to his when I adopted my daughter could I legally marry him and as his wife pay no inheritance tax?
Customer: replied 18 days ago.
Hi Julia are you still working with me on this issue?
Thank you. Catherine.

Hi Catherine, yes, I will be replying to you today.

Customer: replied 18 days ago.
Thank you Julia, if not tonight if you could answer me tomorrow morning please. Thank you.

As your stepfather did not inherit the house from his spouse, unfortunately, the second residence nil rate band of £175,000 may not be deducted. If you were not adopted, his assets do not pass on to you on the intestacy rule, and your stepfather needs to make a Will if he wants the assets to be gifted to you after his death. If you were not adopted and if he is divorced or widowed, then yes, you can marry him, and then, if he dies intestate, you receive a half of the estate plus £270 as a spouse, and the rest goes to his children. If he dies leaving a Will and you are officially married, then you pay no inheritance tax.

To calculate the inheritance tax due without marriage, you add £360,000 plus £309,000 plus 1/3 of the 8 acres (if you are sure that the ownership is not joint, documents shall be checked). Then you deduct £500,000 and find out 40 % of the reminder.

You may create a trust for the money, a special deed shall be drafted and signed. Another option is to open a joint account with your stepfather. Upon his death the money from the account pass on to you automatically as the joint account owner.

Customer: replied 18 days ago.
Thank you very much for this Julia, you work very late!If we create a trust for me and my daughter how much of the £309,000 could be put into these 2 trusts?
What is the limit without paying taxes on his death, is it easy to set up a trust and once it is set up can you take the money out if you need to?Would a solicitor like you be able to draw up a deed for trust funds?If me and my stepdad open up a joint bank account and the £309,000 is paid into it would I still have to pay inheritance tax on his death if it is in a joint bank account?Although I am not legally adopted by my step father he has already got a will and in his will he has left me his entire estate: house, land and any money but he has put in his will that he leaves everything to me his daughter? But I am not legally his daughter by adoption or blood.
My biological mother, his wife died 4 years ago, she was married to him for 40 years but she had me with her first husband. My step dad has only ever been married to my Mom and has no children of his own. Me and my adopted daughter live with him and care for him.
So would it be legal for me to marry him and then would he have to change his will to say that he leaves everything to me his wife? And then I would not pay any inheritance tax on the house, land or money as his spouse?
But then I would leave everything to my adopted daughter in the event of my death and she would have to pay inheritance tax?
Would the above be legal in the eyes of the law?If it would be legal then I could get a license to marry him?Thank you Julia.
I will contact you tomorrow morning again.

Good morning, Catherine. To advise properly, the full family tree shall be drafted, bank transactions for the last 7 years shall be checked to see if there were any gifts, credit history is needed (mortgages, credit cards, other creditors), all the properties documents to be checked, what type of ownership is registered, information about other potential beneficiaries shall be collected. I am afraid this will not be possible in the limits of this chat. Based on what you said, the marriage still can be done, but to avoid potential disputes the Will to be amended. If you are not a daughter, no £175 residence nil rate band may be deducted. If you are a wife, you may leave the Will unamended because it will be automatically revoked upon the marriage. As the wife, you will receive everything (subject to absence of creditors and hidden beneficiaries) and pay no tax. If you are a daughter and have £309,000 on a joint account with your stepfather, you receive money automatically avoiding inheritance procedures. If you die, your daughter will pay inheritance tax too, but she will have at least £500,000 deductions. If this money £309,000 were not in cash, but were left in the business, you would have 100 % relieve on this money (if the shares are unquotes), it is called business relief. Hope this helps.

There are a several estate planning lawyers in your place - https://maplebrookwills.co.uk/telford-and-shrewsbury/ , https://nlsshropshire.co.uk/ , https://www.internetbusinessdirectory.co.uk/shropshire/newport/ibdeng37a014.htm . Please contact them to draft a trust deed, if you decide not to marry.

Hope this helps. Please feel free to ask me further questions if you have any.

Customer: replied 17 days ago.
Thank you so much for all your effort on this subject and the web sites of local solicitors that deal with this business and could set up a trust fund for my daughter.
Could you tell me how much could a trust fund be set up for my daughter and how much money could be put into without any inheritance tax?So if I understand correctly me and my stepdad can open this week a joint bank account in both our names and have the £309,000 paid into this account and does this mean that in the event that I die my daughter would pay inheritance tax on this account?
In the event that my stepdad died would I have to pay inheritance tax on any of this money left in the account?Once again thank you so much for clearly explaining this if you could just clarify the 2 ave questions about the amount that could be paid into a trust fund without inheritance tax?And if my stepdad died would I have to pay inheritance tax on this new joint bank account in both our names?I will not bother you more today on your Sunday, I will give you an outstanding report and feedback and would like to make a donation to you Julia for all your help on this matter.Thank you again. Catherine.

Catherine, it would be dangerous to advise in precise figures without seeing the documents and full detailed interview first. To avoid tax on the joint account, in case you are not married, the money transaction shall be carefully structured, in particular, mentioning your name as the money receiver together with your father’s name. Also, your relations with your father shall be carefully established for you to be eligible for £175,000 deduction (the existing Will may have already covered this uncertainty, the wording shall be checked). There are many nuances and I can give you a general advice only within this chat. Your daughter will also pay the tax, but because she is legally your child she will definitely be entitled to the residence nil rate band deduction. You may consider to plan a gift for her then she will not pay the inheritance tax if you survive 7 years after the gift, otherwise the taper relieve will apply.

Customer: replied 12 days ago.
Good morning Julia I went to see my accountant yesterday and she basically said the same as you and has helped me with the inheritance tax, so I wanted to say a very big thank you for all your wonderful help.
I have another problem with a fish and chips shop where my daughter was working and they are refusing to pay her for the last 2 shifts she did. Can you help with this or is employment law not your speciality?
Thank you
Catherine.

Hi Catherine, I am glad your matter is moving forward!

Could you please create a new thread with this new employment question? My colleagues will be replying to you shortly. I am not specialising in the employment law, unfortunately.

All the best to you!

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