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tdlawyer
tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience:  11 years experience of general practice.
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my mother has recently passed away, my father passed away in

Customer Question

my mother has recently passed away, my father passed away in April 2012, is the inheritance tax threshold just £325,000 ?
Submitted: 3 years ago.
Category: Law
Expert:  tdlawyer replied 3 years ago.

tdlawyer :

Hello, welcome to the website. My name isXXXXX can assist you with this.

tdlawyer :

Have any gifts been made by either rod them in the 7 years preceding their death?

tdlawyer :

Have there been any transfers by them to trusts etc?

Customer:

Gifts have been made within the 7 years.

tdlawyer :

You need to work out the value of those gifts, and add them up, and these would be added up for the purposes of counting towards the £325,000. However, people have annual limits of £3,000, which can be carried forward if not used for the following year.

tdlawyer :

So small gifts can be exempt for the purposes of counting towards the IHT limit.

Customer:

Thank you for this information, so simply is the answer to my question "yes it is just £325,000"

tdlawyer :

Per person, yes, that's right.

tdlawyer :

You need to appreciate though that property can pass from one person to another an be outside of that limit too, if you have joint tenancies, in respect of which property passes automatically by law.

tdlawyer :

Is there anything else you would like me to answer for you?

Customer:

You say per person, so is my fathers allowance still valid? as everything was passed to my mother when he died. or is it now just £325,000 for my mother?

tdlawyer :

It would be just £325k for her now. His estate presumably took the benefit of the spousal exemption, and if everything was left to her, then his estate paid no IHT. However, now that she has passed, she only has the benefit of the £325k exemption.

Customer:

Thank you.

tdlawyer :

You're welcome. Is there anything else you want to clarify?

Customer:

No Thanks

tdlawyer :

Okay, thank you. Are you satisfied with the service provided today?

tdlawyer, Lawyer
Category: Law
Satisfied Customers: 1096
Experience: 11 years experience of general practice.
tdlawyer and other Law Specialists are ready to help you
Expert:  Clare replied 3 years ago.
HiThank you for your questionAssuming that when your father dies his estate passed in its entirety to your mother - or less than £325,000 passed to anyone - else, then you can claim the unused part of his IHT allowance as wellI hope that this is of assistanceClare
Customer: replied 3 years ago.

Thank you for this.... this would concur with what some friends have told me, as my fathers estate did pass on to my mother, and no IHT was paid. So therefore I assume this means that we now have a total of £650k IHT allowance on their total estate.

Expert:  Clare replied 3 years ago.
Hi
If ALL his estate passed to your mum, AND he had made no Potentially Exempt transfer in the previous 7 years then yes the full £650,000 allowance is available.
if he had made such transfers but they came to less than £325,000 then you have the unused percentage of his allowance available
Clare

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