Inherticance Tax Help

kidmugsy

le_loup wrote: »

Interesting point of view - that anyone receiving benefits, medical care, roads, police, etc. are spongers.

I said no such thing. Have you been drinking?

youngcouple

the property is worth around 500k, so if valued at that the IHT would be 70k (40%).

If she held onto it - would her children have to pay both the IHT and the CGT or just the IHT?

Thank you

youngcouple

Yes it does (property valued around 500k). She is married, but not to the childrens father and would want all of her assets to go to her children.

xylophone

See http://www.litrg.org.uk/tax-guides/bereavement-and-tax/what-nil-rate-band

IHT will be due on your MIL's estate after taking into account any nil rate band(s) as above.

Your MIL can bequeath her own property to beneficiaries of her choice.

Has she made a will?

If not, she should see a solicitor and make one.

http://www.step.org/member-directory

https://www.moneyadviceservice.org.uk/en/articles/calculating-and-paying-tax-after-someone-dies

Keep_pedalling

youngcouple wrote: »

Yes it does (property valued around 500k). She is married, but not to the childrens father and would want all of her assets to go to her children.

Was she widowed from her children's father?

youngcouple

If the total asset value is 500k and she leaves it to her 2 children, then they would inherit 250k each, below the 325k threshold? or does the threshold pertain to the total estate regardless of how many way's it's distributed?

Mojisola

youngcouple wrote: »

If the total asset value is 500k and she leaves it to her 2 children, then they would inherit 250k each, below the 325k threshold? or does the threshold pertain to the total estate regardless of how many way's it's distributed?

The tax is on the size of the estate, not on the beneficiaries.

kidmugsy

Keep_pedalling wrote: »

Was she widowed from her children's father?

OP, this is a crucial question: you really need to answer it.

xylophone

OP, this is a crucial question: you really need to answer it.

Transferable nil rate band/main residence nil rate band is covered in first link in my post 15 above.

kidmugsy

Yeah, but the OP hasn't answered the question.