Decision support · MyFamilyInherits

Estate value

£560,000

1 property · 12 items · accounts & pensions

Tax-free allowance

£500,000

£325k nil-rate + £175k residence band

Taxable estate

£60,000

value above your allowance

Estimated IHT

£21,600

at the 36% charitable rate

£500,000 within allowance £60,000 potentially taxable

💡 How you allocate changes the tax. Gifts to Margaret are exempt; the RNLI gift holds your rate at 36%. The suggestions below show where a different choice would change the bill — accept or skip each, nothing happens on its own. computed against INHERIT · E&W Tax · reviewed: Stable

Suggestions to weigh 3 to review

Each is a prompt, not a change. Accept the ones that fit; skip the rest. We never edit your plan without you.

Worth a look

Margaret's £280,000 is tax-free now — but tax is only deferred, not cancelled

Affects: Margaret Richards (spouse) · 50% of residue

Leaving the residue to Margaret is exempt from Inheritance Tax today. The catch: whatever she still holds is taxed on her later death, when only her own allowance applies. Many couples plan for this so the children aren't surprised later.

Deferred to second death, in plain English: spouse gifts pass tax-free, but the bill can land on the next generation. A tax adviser can keep the exemption and still cut the eventual bill (e.g. gifts during life, a trust).

IHT now

£0

Potential later (2nd death)

up to ~£74k

If planned

often much less

computed against INHERIT · E&W Tax · reviewed: Stable

Tax suggestion

Keep the RNLI gift at £56,000 (≥10%) to hold the 36% rate on everything else

Affects: RNLI (charity) · and the tax every other beneficiary's share carries

Your £56,000 gift to RNLI is more than 10% of the £60,000 taxable estate, so the rest is taxed at 36% instead of 40% — a £2,400 saving for the family. If the gift slipped below £6,000 the rate would jump back to 40%.

Charitable rate, in plain English: leave at least a tenth of the taxable part of your estate to charity and HMRC taxes the remaining taxable part 4 points lower. The charity gets the full gift; the family pays less tax.

IHT at 40%

£24,000

IHT at 36%

£21,600

Family saving

£2,400

computed against INHERIT · E&W Tax · reviewed: Stable

Decision needed

£4,065 of items are still unallocated — decide them to know each child's real share

Affects: Paul & Sarah's taxable shares · 4 items, no recorded decision

Four items (the Gold Sovereigns, Grandfather Clock, Royal Doulton set and an unvalued ring) have no allocation yet. Until they're placed, the children's shares — and the tax each carries — can't be finalised.

No tax rule changes here; this is simply about finishing the plan. The sovereigns and clock also have shared interest to resolve in the table below.

computed against INHERIT · E&W Tax · reviewed: Stable

✓ Applied

Residence band kept — the home is passing to your children

Affects: the £175,000 residence nil-rate band

Because the property is left to direct descendants (Paul and Sarah), the extra £175,000 residence allowance applies. This is already reflected in your £500,000 tax-free figure above. Nothing to do.

✓ Reflected in your allowance

Tidy-up

Group the low-value, no-interest items into "household contents"

Affects: Lowry print, vinyl, tea set · ~£1,530 with no expressed interest

These have no tax effect and no one's asked for them. Grouping them as residue keeps the table focused on the decisions that matter. You can always split them out again.

items

beneficiaries

allocated

unallocated

shared interest

£21,600

est. IHT (36% rate)

All 12

Needs attention 5

Unallocated 4

Shared interest 3

Tax effect 4

Rooms ▾

Item	Value	Room	Interest	Chat	Allocation	Tax note
⏱ Rolex Submariner 116610LN Watches · Luxury	£9,200	Safe	PaulSarah Shared (2)	4	✓ Paul Allocated	▸Adds to Paul's taxable share. Charitable 36% rate already applies.
📚 Book Collection (~200) Books · First Editions	~£4,200	Study	Paul	2	✓ Paul Allocated	▸Taxable to Paul at 36% within the estate.
🪙 Gold Sovereign Collection Coins · Precious Metals	£3,400	Safe	PaulSarah Shared (2)	7	Unallocated	⚠Shared interest unresolved — decide who, then it joins their taxable share.
📸 Leica M6 Cameras · Collectibles	£2,800	Study	Sarah	1	✓ Sarah Allocated	▸Taxable to Sarah at 36% within the estate.
🕰 Grandfather Clock Clocks · Furniture	£1,800	Hallway	PaulSarah Shared (2)	12	Unallocated	⚠Shared interest unresolved — the busiest chat. Decide before finalising shares.
🎸 Gibson Les Paul Standard Musical Instruments	£1,650	Living room	Sarah	3	✓ Sarah Allocated	▸Taxable to Sarah at 36% within the estate.
🪑 Dining Chairs ×6 Furniture · Dining	£1,800 £300 each	Dining room	Paul ×4Sarah ×2 Shared (2)	5	Paul ×4, Sarah ×2 Split allocated	▸Split between Paul & Sarah; both shares taxable at 36%.
💼 Victorian Writing Desk Furniture · Antique	£1,200	Study	No interest expressed	0	✓ Paul Allocated	▸Taxable to Paul at 36% within the estate.
🖼 Lowry Print (signed) Art · Prints	£750	Living room	No interest expressed	0	Unallocated	— no tax effect; falls into residue if left undecided
🎵 Vinyl Collection (~80) Music · Records	~£600	Living room	Sarah	0	Unallocated	— low value; no material tax effect
☕ Royal Doulton Tea Set China · Tableware	£180	Kitchen	No interest expressed	0	Unallocated	— low value; no material tax effect
💍 Engagement Ring Jewellery	Not valued	Safe	Earmarked — Margaret's	—	✓ Margaret Allocated	★To Margaret (spouse) — exempt. Tax deferred to second death.

IHT figures are estimates computed from your estate against the open INHERIT standard's England & Wales tax rules (status: Stable, reviewed by a named reviewer) — they are guidance to help you decide, not tax advice or a formal valuation. The spousal exemption defers tax to the second death rather than cancelling it; the 10% charitable test applies to the taxable part of the estate. Suggestions are prompts only — nothing changes in your plan until you choose it. MyFamilyInherits does not provide legal or tax advice; planning is delivered by the regulated firms shown (SRA / CIOT / STEP). You will never be charged automatically.

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