misstealeaf
Registered User
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- 93
My dad passed recently and left his property to my mam and all other interests in his estate to me. These other interests comprise of
1 savings
2 death in service benefit from his job
3 critical illness insurance policy
4 life assurance policy
The solicitor told my mam that the life assurance policy does not form part of the estate. Is this correct? Does this men that it does not take up part of my threshold (225k) for CAT purposes?
I would like to share part of my inheritance with my mam e.g. Give her 50% of the sum of 1-4 above. I obv have 2 options in this regard so I am wondering what is possible:
1 take the full inheritance myself then gift part of it to my mam.
2 alter the will/disclaim part of my share in the estate in her favour.
No 2 is my preferred option from a tax perspective as (I) the sum of 1-4 above will be close to my total group a inheritance tax threshold of 225k (ii) technically if I gift to my mam she will be liable for CAT on the gift above the group 2 threshold (iii) if she pre deceases me her entire estate will be willed to me so I could inadvertantly end up paying tax on monies she leaves as I used up part of my 225k threshold taking my dads inheritance to pass it to her. 2 seems the most advantageous to me....I hope that makes sense.
My question is really if 2can be done, how I'd go about doing, when it needs to be done before/after probate. Really appreciate any feedback on this.
1 savings
2 death in service benefit from his job
3 critical illness insurance policy
4 life assurance policy
The solicitor told my mam that the life assurance policy does not form part of the estate. Is this correct? Does this men that it does not take up part of my threshold (225k) for CAT purposes?
I would like to share part of my inheritance with my mam e.g. Give her 50% of the sum of 1-4 above. I obv have 2 options in this regard so I am wondering what is possible:
1 take the full inheritance myself then gift part of it to my mam.
2 alter the will/disclaim part of my share in the estate in her favour.
No 2 is my preferred option from a tax perspective as (I) the sum of 1-4 above will be close to my total group a inheritance tax threshold of 225k (ii) technically if I gift to my mam she will be liable for CAT on the gift above the group 2 threshold (iii) if she pre deceases me her entire estate will be willed to me so I could inadvertantly end up paying tax on monies she leaves as I used up part of my 225k threshold taking my dads inheritance to pass it to her. 2 seems the most advantageous to me....I hope that makes sense.
My question is really if 2can be done, how I'd go about doing, when it needs to be done before/after probate. Really appreciate any feedback on this.