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Clare
Clare, Solicitor
Category: Law
Satisfied Customers: 34105
Experience:  I have been a solicitor in High Street Practice since 1985 with a wide general experience.
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If 2 properties have been left by one person to two members

Customer Question

if 2 properties have been left by one person to two members of his family one is below the inheritance tax threshold £290k and the other is over the inheritance tax threshold £450k who pays the tax on the properties? they have been put together as part of an estate so both together are above £700k. are they both subject to inheritance tax or only the one above the threshold and the lower one being disregarded.
Thank you
Claire Thomas
Submitted: 1 year ago.
Category: Law
Expert:  Clare replied 1 year ago.
HiThank you for your questionMy name is ***** ***** I shall do my best to help you.It is the Estate as a whole which is liable to Inheritance Tax - not the individual assets - so it is correct that the value of all the assets is added together for IHT purposesHow the tax is paid will depend on what other assets are available and the wording of the Will itselfPlease ask if you need further detailsClare
Clare and other Law Specialists are ready to help you
Customer: replied 1 year ago.
how much tax would have to be paid on 720k
Customer: replied 1 year ago.
how much tax would be paid for 720k?
Expert:  Clare replied 1 year ago.
Hi
That would depend on whether or not the deceased was entitled to a double rate band (from an earlier deceased spouse) or not
If not the the estate above £325,000 would be liable to 40% tax
Clare
Customer: replied 1 year ago.
so working it out only 395k is subject to 40% inheritance tax?
Expert:  Clare replied 1 year ago.
That is likely to be correct - but it is payable from ALL the estate - to start with from the Residue and if not from the assets equally unless the Will states otherwise
Customer: replied 1 year ago.
the will states only the 2 people who have the properties pay the inheritance tax regardless of any other monies left to others so any money left to the ones who inherited the properties it will come out of that money the individual has been left
Expert:  Clare replied 1 year ago.
Hi
What is the exact wording used?
Clare
Customer: replied 1 year ago.
I device my freehold dwellinghouse to my nephew absolutely subject to all inheritance tax attributable thereto and payable by reason of my death
Expert:  Clare replied 1 year ago.
Is that the same for both properties?Clare
Customer: replied 1 year ago.
Yes it is. This has been going on for 2 years now and nothing has been paid out of the will or anything
Expert:  Clare replied 1 year ago.
Who are the executors as that wording is unambiguous.The IHT need to be assessed and then allocated to each property in proportion - so the higher value one will pay 60% of the bill and the lower value one 40% (assuming no other assets)Clare
Customer: replied 1 year ago.
The executors are a family member who has been left the majority of the estate and his cousin
Expert:  Clare replied 1 year ago.
So are there other assets involved - or just these housesClare
Customer: replied 1 year ago.
Mainly farm land which was signed over in 2007.
Customer: replied 1 year ago.
Over 350k has already been paid in tax due to the time this is taking
Expert:  Clare replied 1 year ago.
Hi
When did the Testator die?
Clare
Customer: replied 1 year ago.
December 2013
Expert:  Clare replied 1 year ago.
Hi
What explanation is given for the delay?
Clare
Customer: replied 1 year ago.
Nothing really just valuation of the properties. I get the feeling that the executors are stalling for some reason
Expert:  Clare replied 1 year ago.
Hi
Then you are entitled to challenge this and ask for the Estate Accounts and an explanation of the delay
Clare

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