Inheritance will I be taxed ?

ste1200

Hello, in the next few weeks, I will be inheriting approx £55k from the sale of my late mothers house. My 4 year old daughter will also be inheriting £10k. My mother paid the inheritance tax before she died, but I was wondering if the money would still be taxed as it is technically an income (I guess ?), and also would I get taxed for having it sat in my bank account as it could be classed as savings?

Thanks
Steve

Cook_County

Unless your mother settled the money in a Trust before she died it is impossible for her to have any UK inheritance tax as this is a liability of the estate.


Was the house owned by a trust or only by her estate? Have you asked her executors?

ste1200

Just by her estate, I am an executor

Mojisola

ste1200 wrote: »

My mother paid the inheritance tax before she died

ste1200 wrote: »

I am an executor

That's a bit worrying.

Are you confident that you really understand how to deal with an estate?

jonesMUFCforever

Inheritance tax is not due before you die because it based on the total worth of your estate as at the date of death.
Who did she pay it to?

ste1200

She always told me she had made allowances for the inheritance tax before she died, I don't know if she ever paid anything to anyone, I was simply asking how I would be taxed based on the figures I gave above, I didn't really expect my competence to be questioned. I'll speak to my solicitor, rather than be belittled.

le_loup

You will not be taxed when receiving an inheritance. However your original question indicated that you had little knowledge about being an executor. It's good that you leave it to your solicitor.
People were trying to help - getting uppity will not help you.

Mojisola

ste1200 wrote: »

She always told me she had made allowances for the inheritance tax before she died, I don't know if she ever paid anything to anyone, I was simply asking how I would be taxed based on the figures I gave above, I didn't really expect my competence to be questioned. I'll speak to my solicitor, rather than be belittled.

That's a very good idea to get some advice.

The executor has a legal duty to manage the estate. Not understanding the basics about inheritance tax and not knowing what she has spent are worrying - it's part of the job to know these things.

Cook_County

As her executor you have a duty to collect assets and pay liabilities (including IHT) before distributing the assets to any beneficiaries. If her Will permits, the estate could appoint a professional, such as a solicitor, to assist with any complexity.

xylophone

You have obtained Probate?

https://www.gov.uk/wills-probate-inheritance/overview

kidmugsy

ste1200 wrote: »

... I will be inheriting approx £55k from the sale of my late mothers house.... I was wondering if the money would still be taxed as it is technically an income

No, it's not income. There will be no income tax to pay.

ste1200 wrote: »

would I get taxed for having it sat in my bank account as it could be classed as savings?

There's no tax on savings: you might be due income tax on the interest on the savings. But remember there's an allowance for savings income that means the first £1k p.a. is tax-free (£500 p.a. if you pay higher rate income tax).