Inheritance TAX due on property?

YesWillMan

indie80 wrote: »

Thanks for the reply Holly and sorry if I didn't make the family situation clearer.

My mother and father are divorced (2002), my father also happened to pass away last year and I've been able to resolve his estate myself as it was much more straight forward.

The property was previously held in joint names between my mother and her partner at the time of his death. She's since had his name removed. They have never been married as he was going through long drawn out divorce proceedings with his wife, they had been separated for 10 years or so I'd image.

I was wondering if as they have been living together for 9 years if that would give her any more rights as if they had been married?

Given the size of the estate I think the IHT limit of £320k would quickly be eaten up. As my mother put in 50% of the properties value originally, where IHT is due, would IHT only be due on his 50% share?

Thanks.

My understanding would be that the property was in joint names that passed by suvivorship to mother, hence why the deceased's name has been taken off the deeds.

Your mothers partner was still married so any assets going to his wife (even though separated) would have Spouse Exemption. Plus Business Property Relief is likely to be available so the value of the business may not be included for IHT. What about gifts/residue to his children would these plus the half share value of mothers property exceed the IHT theshold?

You may need to get copy of the Will and Probate from the Probate Registry to answer that . Here is the link http://www.justice.gov.uk/courts/probate/copies-of-grants-wills
it is usually best to go through your local Probate Registry.

The copy of the Grant will tell you what the Gross and Net estate were. The will tells you who receives the estate and/or any legacies