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Sam
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Category: Tax
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My husband and I jointly own two small properties current

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Hello, My husband and I jointly own two small properties current value approx £350.00. My husband has a house in London that he owned before he met me. (We have been together now 25 years). This is not in joint names. We are however legally married. As my husband is a lot older than me my concern is that if he was to die before me then IHT would mean I would need to sell the London house which is worth quite a bit. We have two grown up children. He has a son from a previous marriage who lives in part of the house with us. What would you advise?
Submitted: 6 months ago.
Category: Tax
Expert:  Sam replied 6 months ago.

Hi

Thanks for your question - I am Sam and I am one of the UK tax experts here on Just Answer.

From his estate what will he leave to you and what will he leave to his children? As anything he leaves to you does not utilise and of the NIL rate band - only that which he leaves to others, and as he has £325,000 threshold so this may not be an issue.

I should point out that we can offer information but cannot offer financial advise as we are UK tax experts not financial advisors which I am sure you can appreciate. but it maybe that he leaves all to you - for you then use your NIL rate band and any which he has not used. This may also still allow him to build in his sons an inheritance as a direct inheritor from his estate but you really would need to seek legal family law advise

Thanks

Sam

Let me know if I can assist with this further

Thanks

Sam

Sam, Accountant
Category: Tax
Satisfied Customers: 13700
Experience: 26 HMRC expertise, PAYE, Self Assessment ,Residency, Rental Income, Capital Gains, CIS ask for Sam Tax
Sam and other Tax Specialists are ready to help you
Customer: replied 6 months ago.
Sorry I'm a little dim on these matters. 'A NIL rate band'? Our properties in total will amount to approx £1,350,000. He has 3 sons by previous marriages and two children by me. He intimated that because we were married everything would come to me anyway but he does not have an up to date will and also I need to make sure that if he were to die then we would;t have to sell the london house just to pay the inheritance tax. I will certainly seek out a Legal family Lawyer to advise too.
Expert:  Sam replied 6 months ago.

Hi

For each of you you can have an estate of up to £325,000 and Inheritance tax does not apply. However this £325,000 limit applies to assets,money and property that you leave to anyone other than the spouse.

SO if your husband were to leave everything to you (and no one else) then you would not have any Inheritance tax to pay as bequeaths to spouses do not attract any Inheritance tax

So if your husband were to pass first and leave everything to you - there would be no Inheritance tax AND he would not have used his Inheritance tax NIL threshold, thereby allowing this to be used by you (along with your own) when you pass.

So IF he leaves everything to you - you would NOT have to sell the London property as you would have no Inheritance tax to pay, but if he were to leave assets worth more than £325,000 to other family - then there would be Inheritance tax to pay - as his estate that has to be considered would be in excess of the NIL band.

I hope that's a little clearer to you

Let me know if I can assist further. I also have added a link here that explains ina little more depth regarding Inheritance tax, the consideration of making gifts prior to death which you may find useful as much for yourself as for your husband.

https://www.gov.uk/inheritance-tax/overview

Thanks

Sam

Customer: replied 6 months ago.
Thank you very much.
Expert:  Sam replied 6 months ago.

You are very welcome

Thanks

sam

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