death of parent and probate/will query

littlemissy29

Hi everyone- Hope someone can assist.

My mother in law died last week - my father in law died 4 years earlier.

On his death, the property (value around £400k now) transferred to 50% the mother in law, and 25% each to my partner and brother.

Now she has passed away too - I have been asked to deal with the legal side of things - which I am happy to assist with.

I'm waiting for a copy of the will to arrive - but if the above is correct (as it is what I have been told so far) - am I right in thinking there should be no Inheritance Tax to pay?

Total assets will be around £500k - including the house -


I'm thinking that the threshold in this case will be £650k - so basically my partner and brother will each split the proceeds from the sale of the house and money after any costs -


Sorry I have no exact facts yet - but am still waiting for the paperwork -

Thanks -

Littlemissy29's other half.

Jackieboy

littlemissy29 wrote: »

Hi everyone- Hope someone can assist.

My mother in law died last week - my father in law died 4 years earlier.

On his death, the property (value around £400k now) transferred to 50% the mother in law, and 25% each to my partner and brother.

Now she has passed away too - I have been asked to deal with the legal side of things - which I am happy to assist with.

I'm waiting for a copy of the will to arrive - but if the above is correct (as it is what I have been told so far) - am I right in thinking there should be no Inheritance Tax to pay?

Total assets will be around £500k - including the house -


I'm thinking that the threshold in this case will be £650k - so basically my partner and brother will each split the proceeds from the sale of the house and money after any costs -


Sorry I have no exact facts yet - but am still waiting for the paperwork -

Thanks -

Littlemissy29's other half.

That'll depend what's in your MIL's will.

getmore4less

IHT is probably not an issue but there are some clarifications needed as there may not be £650k nil rate band.

You need to have both wills, the estate accounts/IHT submission for the FIL.

Start with was the mother left a life interest in the house?

littlemissy29

yes - true - Sorry - I should have said that as far as i am aware the wills were mirrored - so I believe her will, will indicate that on her death, her share of the property will go to my partner/her brother.
I guess I'll know in a couple of days, when the paper work arrives -It is just that I am lucky enough to not have had to deal with anything like this before.

Keep_pedalling

As you FIL left his half of the house to his children, a good proportion of his nil rate band is not transferable so your MILs nil rate band will be significantly below £650k, and there may be a capital gains issue for your husband and his brother.

Do you know what his share of the house was valued at for probate?

da_rule

As has been said, you MiL's nil rate band will only be increased by the amount that was left of your FiL's nil rate band.

So, if the house was worth £300k when your FiL died, £150k of the transfer (the part that transferred to you and your brother) would have been chargeable to you FiL's nil rate band. Therefore he would have been left with £175k which can be added to your MiL's. If your FiL left items to anyone else (other than your MiL) then the value of this will also need to be deducted from your FiL's nil rate band.

littlemissy29

Thanks all - I didn't realise this is how it worked - I'll await the documents and go through them - I may be back with another question or two if that is OK!

LM29's other half.

getmore4less

Until you know if there was a life interest you will not know if the nil rate band is reduced.