Inheritance tax

330d

I have a question regarding IHT, if I leave everything to my wife there will be no inheritance tax to be paid.
I have a house which I want to leave to my mother incase I go first. I believe the threshold for IHT is £350k. What happens if the house is worth more than £350k?
Will she have to pay IHT? Or if i leave it in a trust, is there no IHT?

Keep_pedalling

Your estate will have to pay any tax due. The big risk it that your mother’s estate will end up paying additional IHT because your bequest takes it well over or desperate into IHT territory. 

330d

Keep_pedalling said:

Your estate will have to pay any tax due. The big risk it that your mother’s estate will end up paying additional IHT because your bequest takes it well over or desperate into IHT territory. 

Sorry I dont quite understand? Are you saying that once my mother inherits the house, when she passes away, the person who the house goes to will pay IHT? 

xylophone

https://forums.moneysavingexpert.com/discussion/comment/76967229#Comment_76967229
This is the house?  You did not after all gift it to your mother?
It is still mortgaged?

If you leave it to your mother, will you also be leaving cash to pay off the mortgage/the benefit of an insurance policy written in trust?

With regard to IHT, you have your nil rate band £325,000.

If your estate is worth more than this, IHT is a consideration.

Once your mother has inherited the house, it becomes part of her estate and there is the potential for IHT depending on the value of her estate and any allowances available to set against it.

Keep_pedalling

330d said:

Keep_pedalling said:

Your estate will have to pay any tax due. The big risk it that your mother’s estate will end up paying additional IHT because your bequest takes it well over or desperate into IHT territory. 

Sorry I dont quite understand? Are you saying that once my mother inherits the house, when she passes away, the person who the house goes to will pay IHT? 

No any IHT due will be paid by her estate before beneficiaries are paid. The point I was trying to make is that if you leave a large portion of your estate  to a parent when added to their existing wealth there is a good chance that is will put their estate into IHT territory. 

Brynsam

330d said:

I have a question regarding IHT, if I leave everything to my wife there will be no inheritance tax to be paid.
I have a house which I want to leave to my mother incase I go first. I believe the threshold for IHT is £350k. What happens if the house is worth more than £350k?
Will she have to pay IHT? Or if i leave it in a trust, is there no IHT?

I'm not sure I follow the logic. If you go 'first' - do you mean before your mother or before your wife? Why would you leave a house to your mother rather than your spouse - just because you think it would help with IHT? Have you thought through what would happen if the house is indeed worth more than £350K and thus part of your nil rate band is used up, whereas all of it could otherwise pass to your spouse if she survives you.

Perhaps one for some proper, fully informed professional advice (the sort you pay for), not least to help you properly understand your options.