Inheritance Tax

Ben27

Hi, Can someone help me with some information.

My Parents aren't married (got divorced then back together years ago) and are looking at getting a re-mortgage on their un-encumbered house. My Mum's name is on my mortgage so the advisor said she can't go on this application. The application is to go solely in Dad's name, and so they are going to do a transfer of equity to put the house in Dad's name solely.

What I want to know is should the worst happen before they finish paying the money back, would my mum have to pay inheritance tax on the house? They are both named as sole benficiaries on each other's wills. House is worth about £160k.

Cheers,

ben

kingstreet

Provided an estate is worth less than £325k (this year) there's no Inheritance Tax to pay.

When the estate is worth more than £325k, the excess is charged at 40%.

kingstreet

Ben27 wrote: »

My Mum's name is on my mortgage so the advisor said she can't go on this application

Did he/she say why?

Where's the adviser from?

Thrugelmir

The house alone is below the inheritance tax threshold.

Ben27

Thanks very much guys. Much appreciated.

Mum can't go on teh mortgage because my mortgage is a financial responsibility of hers even though she doesn't pay anything towards it, so they would not qualify between them.

Thanks again.

Thrugelmir

Ben27 wrote: »

Thanks very much guys. Much appreciated.

Mum can't go on teh mortgage because my mortgage is a financial responsibility of hers even though she doesn't pay anything towards it, so they would not qualify between them.

Thanks again.

Is your Mum is guaranteeing your mortgage, using the house as security?

getmore4less

I hope they don't fall out again.


I would look carefully at why they are saying she can't keep the house jointly and go on the mortgage, nothing says you can't have 2 mortgages.

kingstreet

getmore4less wrote: »

I would look carefully at why they are saying she can't keep the house jointly and go on the mortgage, nothing says you can't have 2 mortgages.

I agree. I was hoping the OP would tell us who he's been talking to. Bank employees have a tendency to think the world stops at their front door and if their employer won't do something, no-one else will. Often, that's not the case.