Financial Times Guide to Inheritance Tax, Probate and Estate Planning

Financial Times Guide to Inheritance Tax, Probate and Estate Planning

by Amanda Fisher
Released December 2010
Publisher(s): Pearson Business
ISBN: 9780273729969

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Book description

Nearly 9.5 million households in Britain will have to pay inheritance tax. What’s the best way to avoid it?

 If you’re administering an estate because someone has died, how do you obtain probate? Is it ever possible to retrospectively minimize an estate’s tax liabilities? The Financial Times Guide to Inheritance Tax, Probate and Estate Planning will help you navigate the complicated maze of inheritance tax, probate, and estate planning. Amanda Fisher tells you what to do when someone dies, helps you deal with administrative affairs and distribute the estate to beneficiaries, offers long-term strategies on how to protect your estate and minimize any potential inheritance tax liability, including the use of trusts. The Financial Times Guide to Inheritance Tax, Probate and Estate Planning:

 

  •   Explains what to do when someone has died including how to register the death
  •   Advises on the duties of executors and administrators and how to consider the validity of a will
  •   Helps you apply for the grant of probate or letters of administration
  •   Guides you through the completion of inheritance tax returns and how to calculate and pay any tax due
  •   Provides advice on lifetime planning and illustrates ways to minimize potential inheritance tax liabilities

 

The Financial Times Guide to Inheritance Tax, Probate and Estate Planning will help you face the difficult task of dealing with an estate when someone has died. You’ll learn the best way to manage the process of acquiring probate and complete the administration of the estate, before distributing to the beneficiaries.

You will also have an insight to the advantages of make a will and organizing your estate efficiently to minimize any future impact of inheritance tax, including the use of trusts. The Financial Times Guide to Inheritance Tax, Probate and Estate Planning covers:

  • Registering a death
  • The duties of the executors and administrators
  • Consideration of the validity of a will
  • Intestacy and partial intestacy
  • Obtaining details of assets and liabilities
  • Applying for the grant of probate and the letters of administration
  • How income and gains are treated before and after the date of death
  • Valuing property for inheritance tax
  • Calculating the inheritance tax liability and completing the inheritance tax return forms
  • Consideration of tax planning and deeds of variation
  • Paying the inheritance tax
  • Distributing the estate to the beneficiaries
  • Lifetime planning to reduce an inheritance tax liability
  • The benefits of making a Will
  • Trusts
  • Glossary of key terms

Table of contents

  1. Cover
  2. The Financial Times Guide to Inheritance Tax, Probate and Estate Planning
  3. Contents (1/2)
  4. Contents (2/2)
  5. Preface
  6. Part 1 The application for probate
    1. Registering a death
      1. When and where to register a death
      2. If the death is referred to a coroner
      3. Who can register a death?
      4. Documents and information you will need to register a death
      5. Documents you will receive once the death has been registered
      6. Removing a body from England or Wales
      7. When someone dies abroad
      8. Registering a death for Scottish residents
      9. Registering a death for residents of Northern Ireland
    2. Other matters to address when someone has died
      1. Arranging to see the deceased’s solicitor or other professional adviser and the reading of any will
      2. Arranging a funeral
      3. Making sure that everyone who needs to know is informed
      4. Checking whether all benefits are being claimed
      5. Starting to collect information and documents
    3. The duties of executors and administrators
      1. If a will was left by the deceased
      2. If no will was left by the deceased
      3. Duties of the personal representatives
      4. Getting professional help
      5. Duties under Scottish law
    4. Consideration of the validity of a will
      1. The conditions for a will to be valid
      2. The testator
      3. Witnesses to a will
      4. Revocation of a will
      5. Codicils
      6. Other matters
      7. What to do if a will is thought to be invalid
      8. What to do if a will is thought to be unfair
      9. Wills under Scottish law
    5. Intestacy and partial intestacy
      1. The rules of intestacy in England and Wales
      2. Cohabitees
      3. Other dependants and the Inheritance (Provision for Family and Dependants) Act 1975
      4. Assets held in joint names
      5. The rules of intestacy in Northern Ireland
      6. The rules of intestacy under Scottish law
    6. Obtaining details of assets and liabilities
      1. Beginning to deal with assets and liabilities
      2. Valuing the property in the estate
      3. Types of assets in the estate
      4. Types of liabilities in the estate
      5. Finding unknown creditors or beneficiaries
      6. Information required to administer the estate
      7. Starting to value the estate
      8. If the valuation of the estate results in a loss
    7. The need for a grant
      1. Probate
      2. The grant of probate
      3. Applying for a grant
      4. When a grant may not be needed
      5. Once the grant of probate has been received
      6. Different terms associated with probate
      7. Scottish variations
    8. Applying for probate and letters of administration
      1. When a grant may not be required
      2. Applying for the grant in England and Wales
      3. Where to apply for the grant
      4. Required forms and returns for excepted estates
      5. Required forms and returns for non-excepted estates
      6. The interview with the probate registry
      7. The cost of applying for the grant
      8. Obtaining the grant
      9. Further information
      10. The equivalent for Northern Ireland: applying for probate
      11. The Scottish variant: applying for confirmation
      12. Summary (1/3)
      13. Summary (2/3)
      14. Summary (3/3)
  7. Part 2 Income tax and capital gains tax
    1. Treatment of income before and after the death
      1. Tax liabilities of the deceased to the date of death
      2. Tax liabilities at the date of death
      3. Tax liabilities of the estate following death
      4. Tax liabilities following the administration period
    2. Tax liabilities and obligations to the date of death
      1. Income tax
      2. National insurance
      3. Capital gains tax
      4. Dates for submitting tax returns
    3. Tax liabilities during the estate administration period
      1. Income tax
      2. Capital gains tax
      3. Assets sold during the administration period before distributions
      4. Assets not sold but transferred to the beneficiaries
      5. Tax planning
      6. Distributions of income during administration
      7. Dates for submitting tax returns
  8. Part 3 Inheritance tax
    1. Completing the inheritance tax return
      1. Inheritance tax return form IHT400
      2. Completing form IHT400 (1/4)
      3. Completing form IHT400 (2/4)
      4. Completing form IHT400 (3/4)
      5. Completing form IHT400 (4/4)
      6. Calculating the inheritance tax payable
      7. Delivering the return form to HMRC
      8. Making amendments or corrections to form IHT400
      9. Scotland and Northern Ireland
    2. How to value property for inheritance tax
      1. Personal possessions and chattels
      2. Land and property
      3. Leases
      4. Bank and building society accounts
      5. Quoted shares and securities
      6. Unit trusts
      7. Unquoted shares and securities
      8. Government securities
      9. National Savings certificates and premium bonds
      10. Individual savings accounts
      11. Foreign assets
      12. Trusts
      13. Pensions
      14. Life assurance
      15. Business interests
      16. Jointly-owned assets
      17. Related property owned jointly with a spouse or civil partner
      18. Jointly-owned assets: Scottish law
    3. Overseas property
      1. Chargeability to inheritance tax
      2. Domicile
      3. Location of assets
      4. Valuation of overseas property
      5. Double taxation relief
    4. Considering gifts made before death
      1. The occasions of charge
      2. Three-step method for calculating IHT (1/2)
      3. Three-step method for calculating IHT (2/2)
      4. Reliefs available on lifetime gifts
      5. Gifts with reservation of benefit
      6. Pre-owned asset transfer rules
    5. Calculating inheritance tax liability on the death estate
      1. The chargeability of the deceased person
      2. Charges to inheritance tax on death
      3. Valuation rules in an estate computation
      4. The death estate computation
      5. Calculation of inheritance tax on the death estate
      6. Nil rate band for spouses
      7. Exempt beneficiaries taking the residue of the estate
      8. Business property reliefs
      9. Tax credit reliefs
      10. Date for payment of inheritance tax
    6. Tax planning after death and deeds of variation
      1. Disclaimers
      2. Deeds of variation
      3. Considerations for making a deed of variation
    7. Excepted estates
      1. Low value estates
      2. Exempt excepted estates
      3. Foreign domiciliaries
      4. Procedure in England, Wales and Northern Ireland (1/2)
      5. Procedure in England, Wales and Northern Ireland (2/2)
      6. The Scottish variant (1/2)
      7. The Scottish variant (2/2)
      8. Summary
    8. Paying inheritance tax
      1. Obtaining an inheritance tax reference number
      2. Payment due date
      3. Methods of payment
      4. Payments from the deceased’s bank account (direct payment scheme)
      5. Payments by instalment
      6. Interest on overdue IHT
      7. How inheritance tax is attributable to beneficiaries
  9. Part 4 When probate has been granted
    1. Distributing the estate
      1. Dealing with the assets once the grant has been obtained
      2. Protecting the personal representatives
      3. Estate accounts
      4. Distributing the legacies and the residue
      5. Form IHT30: clearance certificate
      6. Insolvent estates
    2. Estate accounts
      1. When estate accounts are beneficial
      2. When estate accounts are necessary
      3. An estate where gifts have been made to charity
      4. Format for the accounts
    3. Revisions and amendments to the estate
      1. Relief for a loss on sale
      2. Land and property
      3. Notes for completing form IHT38
      4. Shares
      5. Notes for completing form IHT35
      6. The effect on inheritance tax
      7. Tax planning
  10. Part 5 Lifetime planning
    1. Lifetime planning to reduce an inheritance tax liability
      1. Making lifetime gifts (1/2)
      2. Making lifetime gifts (2/2)
      3. Lifetime gifts: be sure you consider all taxes
      4. Using the inheritance tax nil rate band
      5. Making a tax-efficient will
      6. Taking out insurance to cover any IHT liability
    2. The benefits of making a will
      1. Choosing how the estate is distributed
      2. Choosing personal representatives
      3. Executors can act immediately
      4. Guardians can be appointed for minors
      5. Tax planning advantages
      6. Special wishes and the funeral
      7. How to draw up a will
      8. Where to keep a will
      9. Living wills
      10. Law in Northern Ireland and Scotland
    3. Trusts
      1. What is a trust?
      2. The settlor
      3. The beneficiaries
      4. The trustees
      5. The main types of trust
      6. Other types of trust
      7. Using trusts for tax and practical reasons
      8. Seeking professional advice
      9. Trusts and Scottish law
  11. Appendix A Tax return SA900 relating to the estate administration period and form R185
    1. Form R185: income payments to beneficiaries
  12. Appendix B Inheritance tax return forms
    1. Form IHT 400: inheritance tax return
    2. Form IHT 400: calculation
    3. Form IHT 402: claim to transfer unused nil rate band
  13. Appendix C Estate accounts (1/2)
  14. Appendix C Estate accounts (2/2)
  15. Appendix D Further help
  16. Glossary
  17. Index (1/3)
  18. Index (2/3)
  19. Index (3/3)

Product information

  • Title: Financial Times Guide to Inheritance Tax, Probate and Estate Planning
  • Author(s): Amanda Fisher
  • Release date: December 2010
  • Publisher(s): Pearson Business
  • ISBN: 9780273729969