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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 14741
Experience:  30 years as a practising solicitor.
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My Mum has just re-written her will. Upon her death her

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My Mum has just re-written her will. Upon her death her assets are split equally between her 3 adult children. However, she has added a clause that allows her 88 year old “boyfriend” to live in her house for as long as he wants (he will be responsible for the upkeep). My Mum’s total assets are approx £600k (House: £500k & Investments: £100k). My Dad passed away 32 years ago and my Mum has lived in the house ever since and pays all the bills. My worry is that we (her children) will end up with an IHT bill that we can’t pay as the main asset (the house) can not be sold. What options do HMRC allow us?

Thanks for your question. Your mother’s estate will benefit from the Nil Rate Band and the Residential NiL Band both for herself and she can use your late father’s allowance at current rates too so her total allowances currently would be £950,000. There should be no IHT to pay. I hope that helps. Please leave a positive rating so that I am credited by JustAnswer for helping you today.

Customer: replied 13 days ago.
Does my father’s allowance still count as he passed away so long ago? Many thanks

The surviving spouse in entitled to use the late spouse’s. nil rate bands irrespective of the date of the first death. Your mother’s estate will have no tax to pay.

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Customer: replied 13 days ago.
Thank you very much - it’s a great relief that we won’t have to borrow to pay HMRC if that scenario were to arise.