Inheritance tax

Angelaeve

Bit of a long one, but I hope someone can give me a answer.
When my mum dies ( not for a long time yet) we will have to pay inheritance tax on her estate. This can be done with her savings, so the house will be going to my sister. The question is when my sister dies ( hopefully not for about 40 years) do we have to pay inheritance tax on the house again. I believe we do as it has gone into different ownership!! Thanks 

onwards&upwards

Every person's estate is potentially liable for inheritance tax based on how valuable it is at the time they die. 

It doesn't matter where the wealth/property came from originally, earned, inherited, won on the lottery or ill gotten gains!  Why would it?

getmore4less

Probably worth looking into IHT mitigation measures now.
IHT is considered a voluntary tax by those that don't plan ahead. 

onwards&upwards

getmore4less said:

Probably worth looking into IHT mitigation measures now.
IHT is considered a voluntary tax by those that don't plan ahead. 

Not by those with morals, who don't wish to shirk their duty to contribute to the public services that benefit everybody.

pphillips

onwards&upwards said:

getmore4less said:

Probably worth looking into IHT mitigation measures now.
IHT is considered a voluntary tax by those that don't plan ahead. 

Not by those with morals, who don't wish to shirk their duty to contribute to the public services that benefit everybody.

I don't think avoiding tax is always a question of morals though especially when sometimes it is even encouraged and facilitated by the government. Whether its was by lifetime giving, paying into an isa, claiming the marriage allowance or taking the maximum tax free lump sum out of their pension; should people really feel guilty about paying less tax? 

Keep_pedalling

As you have given no information about the value of the property or your sister’s marital situation no one is going to have a clue, and in 40 years time IHT rules are like to have changed somewhat.

Angelaeve

Keep_pedalling said:

As you have given no information about the value of the property or your sister’s marital situation no one is going to have a clue, and in 40 years time IHT rules are like to have changed somewhat.

Yes I know things will probably change in 40 years time, but I am going by the rules now. My sister is single with 4 children. We are not trying to avoid paying tax. Just wanted to know if my sister lived in the property until she dies would her son have to pay tax again.

onwards&upwards

pphillips said:

onwards&upwards said:

getmore4less said:

Probably worth looking into IHT mitigation measures now.
IHT is considered a voluntary tax by those that don't plan ahead. 

Not by those with morals, who don't wish to shirk their duty to contribute to the public services that benefit everybody.

I don't think avoiding tax is always a question of morals though especially when sometimes it is even encouraged and facilitated by the government. Whether its was by lifetime giving, paying into an isa, claiming the marriage allowance or taking the maximum tax free lump sum out of their pension; should people really feel guilty about paying less tax? 

Inheritance tax?  Yes they should.   

Its not like they even earned the money after all. 

onwards&upwards

Angelaeve said:

Keep_pedalling said:

As you have given no information about the value of the property or your sister’s marital situation no one is going to have a clue, and in 40 years time IHT rules are like to have changed somewhat.

Yes I know things will probably change in 40 years time, but I am going by the rules now. My sister is single with 4 children. We are not trying to avoid paying tax. Just wanted to know if my sister lived in the property until she dies would her son have to pay tax again.

Her son will never have to pay inheritance tax.  Nobody alive ever does.  Inheritance tax comes from the estate of a deceased person if the value of assets - debts is above the threshold at the time.  

Angelaeve

onwards&upwards said:

Angelaeve said:

Keep_pedalling said:

As you have given no information about the value of the property or your sister’s marital situation no one is going to have a clue, and in 40 years time IHT rules are like to have changed somewhat.

Yes I know things will probably change in 40 years time, but I am going by the rules now. My sister is single with 4 children. We are not trying to avoid paying tax. Just wanted to know if my sister lived in the property until she dies would her son have to pay tax again.

Her son will never have to pay inheritance tax.  Nobody alive ever does.  Inheritance tax comes from the estate of a deceased person if the value of assets - debts is above the threshold at the time.  

Yes but when my sister dies she will leave the house to her son. Won’t he have to pay inheritance tax. This is where we are confused 

Angelaeve

onwards&upwards said:

Angelaeve said:

Keep_pedalling said:

As you have given no information about the value of the property or your sister’s marital situation no one is going to have a clue, and in 40 years time IHT rules are like to have changed somewhat.

Yes I know things will probably change in 40 years time, but I am going by the rules now. My sister is single with 4 children. We are not trying to avoid paying tax. Just wanted to know if my sister lived in the property until she dies would her son have to pay tax again.

Her son will never have to pay inheritance tax.  Nobody alive ever does.  Inheritance tax comes from the estate of a deceased person if the value of assets - debts is above the threshold at the time.  

When my sister dies she will leave the house to her son. Surely tax has to be payed again from the estate