Where to find out about inheritance tax?

Lois_and_CK

margaretclare wrote: »

Your mum's and dad's wills...is what you are bickering about the residue i.e. what is left after the second of them dies? You talk about 'their' wills as if they would go together - unlikely, unless they both die in a tragic accident.

They each have an IHT threshold and whichever one of them goes first passes on his/her IHT threshold to the survivor. So when the second of them dies, IHT only kicks in if the estate is £650K (IIRC).

Yes, sorry, I mean after the second of them dies. From what I understand, they each have a will that leaves everything to the other. What my sisters are arguing about (not me) is their wishes for when the second parent dies. Thank you for the information on the estate threshold.

Pee

Sometimes older people find it very hard to believe the value of their property, because it's just a little house they bought in 1952 for £x... on the other hand if you drop into the conversation what the house is worth, they may spot what you are thinking...

localhero

Pee wrote:

Sometimes older people find it very hard to believe the value of their property, because it's just a little house they bought in 1952 for £x... on the other hand if you drop into the conversation what the house is worth, they may spot what you are thinking...

I find it more likely the Will is silent on the matter, and that the parents have no idea that the house is to be given free of IHT - something which should have been pointed out to them when they drew up the Will.

Someone really ought to make them aware of the situation in case it isn't what they intend.

Errata

Why not talk to your mum along the lines of " Mum, I was reading something in the paper the other day and it looks like the taxman could take a big lump of what you leave for something called 'inheritance tax'. I'm not really up to speed on it, would you like me to find out if that would happen". That puts mum in control of her will and her estate and she can leave things as they are, or make a new will, from a position of informed choice.