Fixed Probate Fees, call:

0800 612 6105

Alternatively local rate:

020 8150 2010

Is it possible to pay no inheritance tax?

Lets assume a man called Mr Smith's passes away whose estate was over £1million when he died. If his residuary estate had been passed to an Immediate Post Death Interest (IPDI) for the benefit of the spouse there would have been no IHT to pay on first death due to the spouse exemption rules. Over the next few years the Trustees could have used their advance powers to pay monies from the Immediate Post Death Interest Trust (IPDI) to Pilot Trusts which we could have arranged at the time Mr Smith made his Will. Assuming Mrs Smith had lived more than seven years these gifts would not have been recalled as Potentially Exempt Transfer (PET'S). The Immediate Post Death Interest Trust (IPDI) could in fact be emptied. Mrs Smith's estate is just her half of her house which is under the nil rate band. The Pilot Trusts now hold the estate for Mr & Mrs Smiths children free of Inheritance tax, free of Capital Gains Tax and free of 10 yearly tax charges and exit charges as the pilot trusts hold under the nil rate band. Important note: This is generic information not individual tax advice, why not call one of specialists advisors on 0845 600 3527 to see if we can help you

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