My father passed away Dec 2014 leaving his entire estate to my mother. Everything that they own i.e. house, and bank accounts being in joint names. My mother has now been diagnosed with Cancer and given only months to live. What are the tax liabilities that I am due to face given the the estate is worth circa £450,000 (with the house value being valued at £350,000 and approx £170k in cash/bond. I have been made Executor of my Mother's Will and I am the sole beneficiary. The question that I want to know is to do with the possible IHT liability in the even that my mother passes on and I will then have to deal with the estate. Do I get the benefit of the Joint Allowance between my parents which I believe is up to £650k tax free and am I going to have to provide for any tax as a result of the inevitable happening and the estate having to be wound up?
I have read varlous articles on IHT but I would very much appreciate a simple and clear answer that will give me guidance on what I should be doing and what the possible liability for the estate be, as I likewise need to be aware of any potential liabilty.
Thank you. Please accept my sympathies for the loss of your father and the sad news regarding your mother. The legal position based on the above in relation to succession and tax is as follows (some of this at least you already will know from what you post above but I have included it all so you have the whole picture:
(I apologise for the formating - I did include numbered paragraphs but the numbering appears to have disappeared on my screen at least)
I hope the above is of assistance? If you have no further questions for now I should be very grateful if you would kindly take a moment to click to rate my service to you today or just reply back to let me know if the above is helpful. Your feedback is important to me. If there is anything else I can help with please reply back to me I'd be very grateful
Thank you Joshua for your reply, it is very helpful. How do I obtain a IHT205 and is there a timeline after my father's passing to get it completed and submitted.
Finally as the sole beneficiary to my mother's will, does this in any way alter your views on the above?
Many thanks Joshua
Thanks for such a clear explanation and I hope that I can now settle down to concentrate on looking after my Mother and put all these worries and concerns behind me
Perhaps the only other question is to ask my Father had two Insurance Policies one by way of a Bond and that is not going to worry us and the other is an Annuity which I assume on the passing of my Mother closes off that Annuity and it would have no capital value is that correct
Thanks again so appreciated explaining it to me so clearly.