Let's start with "obviously, my Mum can pay her bill". Yes. Because it is £0. Total spouse exemption.
His late father has clearly left a very large estate. And, as part of Inheritance Tax Planning, wants to ensure that his £325,000 tax-free slice, as well as his Wife's, get utilised. As he should. There will also be additional exemptions in relation to the House. I expect that just the IHT exemptions (before other measures, such as annual gifts etc) will be £1 million. Only pay tax on sums received above that.
The medal and shirt (I'm not sure if he is even getting the latter) are, between them, valued at between £100-200,000. Suppose the medal is worth £100,000. He would face a £40,000 tax bill. But only after he (and any other children) have already received between them £1 million+ of other assets.
IHT is a pain, but it's only paid by those who inherit "considerable" sums.
There is a £325,000 threshold, & in many cases, a much larger amount that can be exempted, & after than, they have to pay 40% - which means they get 60%. Is that really so onerous?
I'm fairly sure 99.99% of the world's population would love to have that "problem".
Comments
Let's start with "obviously, my Mum can pay her bill". Yes. Because it is £0. Total spouse exemption.
His late father has clearly left a very large estate. And, as part of Inheritance Tax Planning, wants to ensure that his £325,000 tax-free slice, as well as his Wife's, get utilised. As he should. There will also be additional exemptions in relation to the House. I expect that just the IHT exemptions (before other measures, such as annual gifts etc) will be £1 million. Only pay tax on sums received above that.
The medal and shirt (I'm not sure if he is even getting the latter) are, between them, valued at between £100-200,000. Suppose the medal is worth £100,000. He would face a £40,000 tax bill. But only after he (and any other children) have already received between them £1 million+ of other assets.
A pretty ridiculous "non-story".
IHT is a pain, but it's only paid by those who inherit "considerable" sums.
There is a £325,000 threshold, & in many cases, a much larger amount that can be exempted, & after than, they have to pay 40% - which means they get 60%. Is that really so onerous?
I'm fairly sure 99.99% of the world's population would love to have that "problem".