Hi, thanks for your question. Just a few more details required to fully assist you:
-Were your parents married?
-What was the size of your father's estate?
-Is there a mortgage on the property, if so how much?
-Is the property held in her sole name, if not with whoand is it as joint tenants or tenants im common?
-Does she have any other assets at all?
Please confirm in when your father died exactly?
Thanks for confirming. Your mother will have a nil rate inheritance tax band of £325,000 and anything above this will be subject to inheritance tax - therefore based on your figures £45,000 will be subject to inheritance tax of approximately £18,000 but a final figure will need to be calculated by the executors.
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My name is ***** ***** i have been a solicitor for more than 30 yearsMy colleague neglected to ask the Crucial question which is whether or not your father left any part of HIS estate to anyone other than your mother.If he did not then in fact your mother's estate will be subject to a nil rate band of £650,000 and no IHT will be payable.Indeed even if he used some of his nil rate band you will still be able to claim any unused percentage which should cover the small amount over £325,000 that is currently in the estate
If you need any further details please do not hesitate to ask
Apologies, yes that was overlooked and the actual nil-rate band that your father would have at the time of his death was £250,000. Therefore if his estate was £40,000 and all this went to someone other than your mother, he would have used 16% of his nil rate band and therefore your mother's nil rate band will increase by 84% to £598,000. Of course your will need to have firm details of who inherited from your father and you have 24 months from the date of your mother's death to apply to HMRC to increase her nil-rate band using this form https://www.gov.uk/government/publications/inheritance-tax-claim-to-transfer-unused-nil-rate-band-iht402
Thank you - in that case your mother's nil rate band will be £650,000 and there would therefore be no inheritance tax liability for her estate.
I am glad that you now have the correct information to go forward