Sole owner of property and inheritance tax

loulou41

My property is worth about £500,000 and is in my sole name. In my will I leave everything to my husband and son. I just want to know whether my husband will be liable to inheritance tax when I die. There should not be a problem if we owe the property as joint tenants and it will go to him with no inheritance tax. The reason I am asking as I am wondering whether I should change my will and house deed to include his name. Thanks

xylophone

https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold

https://www.gov.uk/inheritance-tax

HappyHarry

loulou41 wrote: »

My property is worth about £500,000 and is in my sole name. In my will I leave everything to my husband and son. I just want to know whether my husband will be liable to inheritance tax when I die. There should not be a problem if we owe the property as joint tenants and it will go to him with no inheritance tax. The reason I am asking as I am wondering whether I should change my will and house deed to include his name. Thanks

If you and your husband are UK domiciled, there will be no inheritance tax to pay on any assets you leave to your husband on death.

When your husband dies, then there may be inheritance tax to pay when he leaves everything to your son. However, your husband's executors will be able to use his nil rate band, your nil rate band, and your residence nil rate band, meaning that a total estate of £750,000 could currently be left to your son on second death.

loulou41

Thanks very much for your clear explanation. Much appreciated.