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Sam
Sam, Accountant
Category: Tax
Satisfied Customers: 13914
Experience:  26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
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My question relates to inheritance tax, both my mother

Customer Question

Hi
My question relates to inheritance tax, both my mother and father jointly own a property in Ferring Worthing worth £297,000 approx which they rent out and they jointly own the property they live in worth £103,000. My dad has £75,998 in cash and my mum has £62, 469 in cash. If my dad dies first his will leaves everything to my mum and if he is the last to die he leaves it all ti me. If my mum dies first her will leaves me her cash and her share of the properties to my dad but if she dies last she leaves everything to me. Neither of them have funeral plans so these expenses will need to be paid from their estate.
My question is will any inheritance tax need to be made before I inherit part or all of the estate?
Many thanks
Bruce
Submitted: 1 year ago.
Category: Tax
Expert:  Sam replied 1 year ago.
Hi Bruce Thanks for your question If Dad dies first then 1) you will have o Inheritance tax as its all left to Mum and furthermore Dad has not used any of his Inheritance NIL band - so this is transferred to Mum, so when she passes, then she has her NIL band and Dads unused so up to £650 of the estate can pass to you You advsie that at this time the cash is Mum £62469 and Dad £75998 and the property they live (which may incase in value) of £103,000 and the jointly owned property of £297,000 so a total estate of £538,467 - so NIL INheritance tax to pay If Mum dies first then you will have some of ehr band used with her leaving you £62,469 so she would have used 20% of her NIL rate band leaving 80% of it to eb added to Dads £325000 when he passes So you will have £585,000 So then the full shares of the property plus Dads money - this is £297,000 plus £103,000 plus £75,998 - a total of £475,998 so you still will have NIL Inheritance tax to pay. Let me know if I can assist further ThanksSam