Will IHT be payable

KatieCocoon

My father passed away in August. He left everything to my mother in their mirror wills. He wisely made sure all their bank accounts were joint, and savings accounts were put in her name only as she was a housewife and didn't pay tax. However, the house deeds were in his name only so the will has to go to probate. The house is worth approx £324K. Aside from the bank and savings accounts aforementioned, his only other asset was his pension which has been transferred to my mother. Will She be liable for any IHT or will everything transfer tax free as she is the spouse? Thanks

Yorkshireman99

KatieCocoon wrote: »

My father passed away in August. He left everything to my mother in their mirror wills. He wisely made sure all their bank accounts were joint, and savings accounts were put in her name only as she was a housewife and didn't pay tax. However, the house deeds were in his name only so the will has to go to probate. The house is worth approx £324K. Aside from the bank and savings accounts aforementioned, his only other asset was his pension which has been transferred to my mother. Will She be liable for any IHT or will everything transfer tax free as she is the spouse? Thanks

As the house is being transfered to his wife no IHT based on the figures you quote.

getmore4less

Spouse IHT exemption for all assets including share of the joint ones.


Any debts will need to be paid and if dad still had a mortgage that will need dealing with.

Keep_pedalling

Not only will there be no IHT now, it is highly unlikely that there will be a liability on your mother's estate when the time comes as she will have 2 lots of nil rate to be used (£650,000) plus, assuming she leaves the bulk of her estate to her direct dependence , 2 lots of primary residence nil rate bands (£200,000) .