Maragret, thank you for your patience.
With changes announced in July 2015 budget, IHT threshold will be increased to £1m in stages over the next 4-5 years.
The Government will add a “family home allowance”, eventually worth £175,000 per person, to the existing £325,000 tax free allowance from April 6, 2017.
This will be worth £100,000 in 2017-18, £125,000 in 2018-19, £150,000 in 2019-20, and £175,000 in 2020-21. This will allow individuals to pass on assets worth up to £500,000, including a family home, without paying any IHT at all. For married couples and civil partners, the total is £1m.
I wish your father a long life.
You should consider getting an insurance policy to cover potential IHT.
Any amounts left for charities is exempt from IHT … you may wish to consider that rather than paying 40% to Government.
Gifts mainly to companies and to the trustees of most types of trusts are taxable at the time you make them and tax is paid at half the normal rate of IHT – currently 20%. You wish to talk to a trust lawyer/expert on this subject.
I hope this is helpful.