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# If the value of an estate is,say, £600,000, and there are 3

### Resolved Question:

If the value of an estate is,say, £600,000, and there are 3 sons who stand to inherit from the sole surviving parent, will inheritance tax be payable by any of the children (assuming that the inheritance tax threshold is for each son is £325,000), or will the tax be due on the value of the estate (so inheritance tax payable on £600,000), then what is left is divided between the 3 sons (so effectively, the sons pay inheritance tax)?
Submitted: 5 months ago.
Category: Tax
Expert:  taxadvisor.uk replied 5 months ago.
Customer: replied 5 months ago.
Hi, just to be clear on your answer, there will be no inheritance tax to be paid by any of the sons, as the value of the estate will be split between them, so they each inherit £200,000, which is below the IHT threshold - is my understanding correct?
Expert:  taxadvisor.uk replied 5 months ago.
Thank you for your reply.It is the value of the estate that determines the amount of IHT payable and not what each son is going to inherit.If you are have a threshold of £650,000 available because you were passed all the possessions and assets by your spouse on first death, then there would be no IHT payable as the estate is worth less than the threshold.On the otherhand, if your threshold is only £325,000 and the estate is worth £600,000 then there is IHT payable on (600,000-325,000) £275,000 at 40% making the amount available for distribution (600,000-110,000) £490,000 and each son would inherit £163,333 and not £200,000. I hope this is helpful and answers your question.
Customer: replied 5 months ago.
Apologies, but still confused. My understanding is that the IHT threshold is £325,000 for children, but you have mentioned a threshold of £650,000, so I do not know where I stand as it appears from your answer that the IHT threshold is not set in stone. My father died some 25 years ago, leaving my mother and three children. Is our IHT threshold £325,000? From your previous answer, this would mean that we are liable for IHT?
Expert:  taxadvisor.uk replied 5 months ago.
Thank you for your reply. If your father passed all his possessions and assets to your mother then the surviving partner (i.e your mother) is allowed to use both tax-free allowances £325,000 x 2 (providing one wasn’t used at the first death).Assuming the above scenario applies then the estate with a potential value of £600,000 would be lower than available threshold of £650,000 and therefor no IHT payable.In this case each son would inherit £200,000. I hope this is helpful and answers your question.
Customer: replied 5 months ago.
Final question - what do you mean '(providing one wasn’t used at the first death)?
Expert:  taxadvisor.uk replied 5 months ago.
Category: Tax
Satisfied Customers: 4673
Experience: FCCA - over 35 years experience as a qualified accountant (UK based Practitioner)
Customer: replied 5 months ago.
Thank you
Expert:  taxadvisor.uk replied 5 months ago.
I thank you for accepting my answer. Best wishes

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