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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 6640
Experience:  FCCA FCMA CGMA ACIS
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My father passed a few years ago and left everything to my

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My father passed a few years ago and left everything to my mum, as per their joint will. My brother and me are the named beneficiaries in my mothers will.My mothers property is worth c£425k and she has circa £250k in savings.Will any inheritance tax be due when the time comes that her assets need to be divided?
Assistant: Have you talked to a tax professional about this?
Customer: not yet, but thought the scenario may be a relatively straightforward one
Assistant: Anything else you want the Accountant to know before I connect you?
Customer: no

Hello, I am one of the experts on Just Answer and pleased to be able to help you with your question.

Your mum would inherit his tax free allowance, in which tax year did he die?

Customer: replied 2 months ago.
He died January 2010

Right, thsi is quite complex and I am a diabetic so must take my insulin and eat, but should be back within the hour to answer your question fully.

Customer: replied 2 months ago.
OK

The IHT threshold was 325K in 2010. as your Mother left the family home to children the tax free element is enhamced and now stands at 425K so with your Dad's allowance her estate has 750K available before Inheritance tax (IHT) kicks in. 425K + 250K = 675K so no IHT will be due on her estate. Simple, as the meerkat in the TV advert would say.

I do hope that I have been able to set your mind at rest on this matter.

Customer: replied 2 months ago.
Thank you, ***** ***** clarify things. One last question, I read about an IHT402 form......one website it should have been filled after my father died, another says I do this when my mother passes. Is the latter correct?

That's the claim form for inheriting unused tax free portions so it will be needed for your father's estate.

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