Okay, so this looks to be a very grey area.
My father-in-law ran his own business and in Feb was diagnosed with cancer and subsequently passed away 6 weeks later. 1 week after his death my mother-in-law was diagnosed with early dementia. My father-in-law expected to live well into his 90's like his dad and was expecting to pass away first. He looked after all the finances in the house and my MIL never really had anything to do with that side of things.
Once my MIL was diagnosed with dementia they took her for the capacity test. She never had anything to do with business of household finances so was unaware of the size of the estate. My FIL was the only shareholder in his business although in the final stages he added my wife and her sister in as directors. They both hold POA and are taking care of closing one business and selling another.
The original plan by the solicitors was to gift much of the estate but after the test they are saying this isn't possible and any money from assets sold would need to go into an inheritance tax investor scheme (which sounds unstable).
In terms of the estate, it will likely be over £2m. They had a spousal will which meant everything went to the other person and once that person passed away it was shared between named members in the will.
The estate includes a number of expensive classic cars and number plates.
To be able to not get stung by inheritance tax, because my FIL worked until his late 70's to provide for the family is there a way that my MIL could gift some of the estate and still be left with £1m to cover care costs? There is an estranged daughter (not my FIL's) who is named in the will for a decent amount, but they were trying to protect my FIL's daughters from a possible future claim as he wasn't really involved with the daughter.
Is there a way to gift the cars and numberplates and then once sold, add that money into investments/savings in my wife and her sisters names so if the care costs were above £1m the money is held, but likely not affected by IHT if my MIL lives longer than 7 years.
My father-in-law ran his own business and in Feb was diagnosed with cancer and subsequently passed away 6 weeks later. 1 week after his death my mother-in-law was diagnosed with early dementia. My father-in-law expected to live well into his 90's like his dad and was expecting to pass away first. He looked after all the finances in the house and my MIL never really had anything to do with that side of things.
Once my MIL was diagnosed with dementia they took her for the capacity test. She never had anything to do with business of household finances so was unaware of the size of the estate. My FIL was the only shareholder in his business although in the final stages he added my wife and her sister in as directors. They both hold POA and are taking care of closing one business and selling another.
The original plan by the solicitors was to gift much of the estate but after the test they are saying this isn't possible and any money from assets sold would need to go into an inheritance tax investor scheme (which sounds unstable).
In terms of the estate, it will likely be over £2m. They had a spousal will which meant everything went to the other person and once that person passed away it was shared between named members in the will.
The estate includes a number of expensive classic cars and number plates.
To be able to not get stung by inheritance tax, because my FIL worked until his late 70's to provide for the family is there a way that my MIL could gift some of the estate and still be left with £1m to cover care costs? There is an estranged daughter (not my FIL's) who is named in the will for a decent amount, but they were trying to protect my FIL's daughters from a possible future claim as he wasn't really involved with the daughter.
Is there a way to gift the cars and numberplates and then once sold, add that money into investments/savings in my wife and her sisters names so if the care costs were above £1m the money is held, but likely not affected by IHT if my MIL lives longer than 7 years.
