Probate and Estate Administration and Inheritance Tax Planning

Background

A widow came to Darwin Gray for advice regarding estate administration. Her husband had not left a Will when he passed away. The couple had two children together. As with all applications for Probate and Letters of Administration, we assisted the client with assessing the value of the Estate and assisting her with the process as a whole.

Our Support

It soon became clear that the value of the Estate was substantial and that, as there was no Will, then the rules of intestacy would apply. Consequently, the children of the couple would be entitled to a significant inheritance (of £300,000 each). Although the share left to the widow would be exempt from Inheritance Tax, that left to his children would not be. The Nil Rate Band (tax-free allowance) of £325,000 would apply to the £600,000 left to the children, but this would still mean that £275,000 would be subject to Inheritance Tax at 40%, making an amount of £110,000

Solution

Darwin Gray’s Wills & Probate experts advised upon and completed a Deed of Variation in relation to the deceased’s estate. The children of the deceased agreed to redirect a portion of their inheritance to their mother, so that they shared an inheritance of £325,000 (the limit of the Nil Rate Band). As everything left to a spouse is free of Inheritance tax, this means that no Inheritance Tax was payable.

If you would like assistance with Estate Administration or Inheritance Tax planning, please get in touch with a member of our Wills & Probate team via our contact form or over the phone on 029 2082 9100 for a free initial chat to see how we can help you.