Hi - not sure if this is the right forum to ask...

[Overdone]

My wife's cousin lost her father a couple of years ago and as seems to be quite common, he left no details of his savings accounts, pension, etc. - it was unexpected and sudden. Both mother and daughter are now struggling as neither has been able to secure any employment and hence funds are dwindling.

I'm trying to help figure out the best way forward for her and her mother and have some details, but it seems as if the mother is still grieving and hard to get much information from her. The concern is the main property, which is potentially worth £2m+.

What would be your recommendation on setting things up to minimise inheritance tax should the mother pass away at some point in the future? As I understand it, the amount of tax would far exceed any funds available so in that case, would the daughter end up in debtor's court? I seem to vaguely recall some instrument where the mother could live in the property as a tenant?

TIA if you can advise or suggest an alternative source of advice

[atticus]

I think you are going to need to take professional Inheritance Tax planning advice. There is a good deal more information that will need to be taken into account.

As to the man's finances, accounts, pensions, insurances etc, can I just check whether all his paperwork has been thoroughly searched.

[PallasAthena]

You need to follow atticus's advice. It's a large estate likely to be subject to a large Inheritance Tax bill.

As the death was a couple of years ago I would hope by now that details of assets - savings accounts, pension, etc - have been found and his Estate has been distributed in accordance with his Will (if there was one).

So is what they need Estate planning advice for the future for your wife's cousin and her mother? They should make sure they use a qualified professional to give this advice.There are a number of frankly dodgy websites around claiming that property can be put in trust and you can still live in it but avoid IHT. The problem is that the schemes they offer to set up (for a fee) mostly don't work for avoiding IHT.

Just to comment on your question: "As I understand it, the amount of tax would far exceed any funds available so in that case, would the daughter end up in debtor's court?" There's no such things a "debtor's court", although it is of course possible to be taken to court for non-payment of debts. But what commonly happens is that a house has to be sold to pay the IHT bill. An independent adviser can discuss the options.

[Overdone]

...

As to the man's finances, accounts, pensions, insurances etc, can I just check whether all his paperwork has been thoroughly searched.

I believe it has and thanks for the advice. I am hoping to go and see the mother and gently ask if she has checked everything. A search on "Estate planning advice" has come up with some results which look reputable but I would be doing a lot more research into these firms before making contact

[Overdone]

You need to follow atticus's advice. It's a large estate likely to be subject to a large Inheritance Tax bill.

As the death was a couple of years ago I would hope by now that details of assets - savings accounts, pension, etc - have been found and his Estate has been distributed in accordance with his Will (if there was one).

So is what they need Estate planning advice for the future for your wife's cousin and her mother? They should make sure they use a qualified professional to give this advice.There are a number of frankly dodgy websites around claiming that property can be put in trust and you can still live in it but avoid IHT. The problem is that the schemes they offer to set up (for a fee) mostly don't work for avoiding IHT.

Just to comment on your question: "As I understand it, the amount of tax would far exceed any funds available so in that case, would the daughter end up in debtor's court?" There's no such things a "debtor's court", although it is of course possible to be taken to court for non-payment of debts. But what commonly happens is that a house has to be sold to pay the IHT bill. An independent adviser can discuss the options.

Thank you - I guess that is the worry that the house will have to be sold to cover the IHT bill and the daughter would have preferred to be able to continue to live in it.... lot's of memories, but I will follow your advice and that from atticus and find an estate planning firm I can trust

[Overdone]

I think you are going to need to take professional Inheritance Tax planning advice. ....

I don't suppose anyone can recommend a good Estate Planning firm? I'd like to look at what they propose (googling suggests they will go down the "Lifetime Trust" approach) or in fact an Independent Financial Advisor, which might overall be a better option looking at the situation as a whole.

TIA for any personal recommendations

[Pezza54]

Sorry I don't know a financial adviser to recommend.
A lifetime trust is probably not suitable in this situation

If the mother and daughter are struggling financially but want to keep living at the property, equity release may be a solution

[Pezza54]

Please read the article "The difference financial advice makes" at www.unbiased.co.uk

Financial advisers should be independent (not connected to providers), regulated by the Financial Conduct Authority (FCA) and qualified

This website can match customers (after providing info online) with available advisers. Alternatively customers can undertake their own research from a list of advisers provided