Inheritance Tax help

DotMatrix

Hello,

I've recently experienced the loss of my mother and am now due to inherit her estate along with my sister on a 50/50 basis.

My father died back in 1993 and left everything to my mother.
The inheritance tax threshold in 1993 was £150k.

My mother's will was last updated in 2009.

We have an estimate of £450k as being my mother's house value, along with savings of £60k. Can someone please confirm what inheritance tax me and my sister are due to pay along with
any suggestions on how we can reduce the amount we will
have to pay.

Thanks.
Toby

jennifernil

http://www.hmrc.gov.uk/inheritancetax/intro/transfer-threshold-examples.htm

this should clarify things.

Your mothers threshold will be £650k.

John_Pierpoint

My father died back in 1993 and left everything to my mother.

Are you the executor and intending to handle the estate on a DIY basis? How are you intending prove mum got 100% of dad's estate?

There is now (2010) a simplified procedure for estates that clearly won't be paying any IHT due to claiming two nil rate bands of 325K.

Have a good read of the HMRC web site or hope you empathy on the help line.

The "Which" guides are a great help.
This is £22.20 well spent for the set of three (you must have the up to date versions):
http://www.amazon.co.uk/Giving-Inher.../dp/1844901181

getmore4less

Usualy available from the library.

Mojisola

getmore4less wrote: »

Usualy available from the library.

Just check that it's the latest edition or the figures may not be up-to-date.

manglesey25

Complete a form IHT400 and you will find your mother wont need to pay any IHT at all.

getmore4less

manglesey25 wrote: »

Complete a form IHT400 and you will find your mother wont need to pay any IHT at all.

AUI with a simple estate and a 100% transferable nil rate band you can now do a IHT205

DotMatrix

Thank you for your help.