Inheritance tax

snooping_around

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getmore4less

Start with this.

http://www.hmcourts-service.gov.uk/infoabout/civil/probate/why_will.htm#chart

Then look up IHT205 and IHT400 for the tax side of things.

dzug1

You need to distinguish what heppens if the parents die together and what happens if one dies first.

SeniorSam

J,

get your parents to make a Will. It will be far easier to sort matters out following their death and in the interim years, there are many ways to help reduce the inheritance tax liability that you can see on this site. A good IFA who specialises in IHT would be a good rout to follow.

Sam

Any

No, it does not all go to the tax man.
The 325k nil rate band is per deceased, not per beneficiary. Therefor 325k tax free,rest taxed at 40%.

On_My_Lonesome

If someone dies intestate (without a will) there is a prescribed list of who gets what, contrary to popular belief it does not all automatically go to the surviving spouse.

If my memory serves me correctly the first £250,000 goes to the surviving spouse along with all personal possesions and 50% ofthe remainder is then split between the children straight away. The remaining 50% is then held in trust for the children with the surviving spouse being entitled to income from that 50%

On the death of the surviving spouse the 50% that was held in trust for the children is then distributed to them.

It is much much simplar if wills are made and they can be done very cheaply and used to mitigat the amount of IHT payable.

I would def suggest seeing an IFA that can give more detailed advice.

Mojisola

This is quite a clear guide - https://www.youngandpearce.co.uk/intestrules.htm

snooping_around

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getmore4less

Mojisola wrote: »

This is quite a clear guide - www.youngandpearce.co.uk/intestrules.htm

[STRIKE]
But out of date so no longer valid.
[/STRIKE]

edit: looks ok

Mojisola

getmore4less wrote: »

But out of date so no longer valid.

What's wrong with it?

noh

HMRC guide here:-
http://www.hmrc.gov.uk/cto/customerguide/page14-1.htm