inheritance

jen0dorf

Hi

not sure if this is the correct forum so if not apologies.

If I pass away my will states that the house and all savings pass to my wife. approximate value : £400000 with the house. Would my wife have to pay inheritance tax?

When she dies and it all passes to our four children equally will they have to pay inheritance tax?
Any info appreciated

thanks

Ian

scotsbob

Anything over about £320K gets taxed. Your best bet is to get rid of a few grand now. A gambling/alcohol/drug addiction is a good way of keeping cash off the radar.


If I die and leave £400K to my missus then, knowing her, there won't be nearly as much as that left when she dies.

Savvy_Sue

Not quite true from scotsbob, and it also depends on where you live. In Scotland the rules are different ...

If in England, anything and everything you leave to your spouse is free of IHT.

Then - again in England and only the current situation, there are plans for change in relation to a house - when the second one dies, there is double the IHT exemption. Although again it partly depends on the wording of the first will - there's an article on the main site and a discussion thread on Cutting Tax.

Biggles

jen0dorf wrote: »

If I pass away my will states that the house and all savings pass to my wife. approximate value : £400000 with the house. Would my wife have to pay inheritance tax?

When she dies and it all passes to our four children equally will they have to pay inheritance tax?

No and no.

What passes to your spouse is free of IHT.

And if she then died, the IHT limit is £650,000 (your £325k plus hers) till 6 Apr 17, when it becomes £850,000 (includes the new 'residence allowance' of £100k each). This is scheduled to become £1m on 6 Apr 20.