Inheritance tax avoidance options - any advice ?

HappyHarry

Was your Mother's home jointly owned with your Father when he passed away? If so;

£325,000 Mother's Nil Rate Band
£325,000 Father's Nil rate Band
£125,000 Mother's Residence Nil Rate Band
£125,000 Father's Residence Nil Rate Band

Total Nil Rate Bands available to Mother's executors is £900,000.

The Residence Nil Rate Bands will each rise to £175,000 in April 2020, meaning a total Nil Rate Band of £1m may be applied to your Mother's estate.

Your Father's Nil Rate Band, your Mother's Residence Nil Rate Band and and your Father's Residence Nil Rate Band will all need to be claimed by your Mother's executors.

starlightscamper

HappyHarry wrote: »

Was your Mother's home jointly owned with your Father when he passed away? If so;

£325,000 Mother's Nil Rate Band
£325,000 Father's Nil rate Band
£125,000 Mother's Residence Nil Rate Band
£125,000 Father's Residence Nil Rate Band

Total Nil Rate Bands available to Mother's executors is £900,000.

The Residence Nil Rate Bands will each rise to £175,000 in April 2020, meaning a total Nil Rate Band of £1m may be applied to your Mother's estate.

Your Father's Nil Rate Band, your Mother's Residence Nil Rate Band and and your Father's Residence Nil Rate Band will all need to be claimed by your Mother's executors.

Thanks HappyHarry for a very clear explanation!
I thought that once mum had used dads nil rate allowance & her own, to inherit dads estate, that that was all used up & therefore I would only have my own nil rate allowance !?!

le_loup

starlightscamper wrote: »

As for not wanting to lose 40% of the estate, & me sounding greedy to some of you who have commented ....this is because my father has worked extremely hard all of his life (physically), & was fighting Cancer for the past 10 years of his life

No, I don't think you're being greedy - just not understanding what tax is for.
Things like treating people with cancer for ten years ......

HappyHarry

starlightscamper wrote: »

Thanks HappyHarry for a very clear explanation!
I thought that once mum had used dads nil rate allowance & her own, to inherit dads estate, that that was all used up & therefore I would only have my own nil rate allowance !?!

Assets left to to UK Domiciled spouse are exempt from inheritance tax (IHT)

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

I'm assuming your parents were married when your Father passed away?

If so, your Mother inherited your Father's estate, and as the estate was exempt from IHT, no Nil Rate Bands will have been used so far. These unused Nil Rate bands can be claimed by your Mother's executors.