Inheritance Tax benefits

Jeremy535897

The inheritance tax bill depends on the value of the house and other assets, so will vary from time to time, and the rates of residential nil rate band relief have increased relatively recently, so that is probably why there was an estimate of £40,000 inheritance tax. If your mother just gives you £3,000 a year and you spend it on living expenses, it will reduce her estate and you should not lose your benefits. If she has surplus income she may be able to give you more.

You are looking for a qualified independent financial adviser.  See https://www.fca.org.uk/consumers/finding-adviser

Mojisola

Stephen7372 said:

It's just we went to a financial advisor who said we'd have a tax bill of £40K so I'm not sure where she's got that from.

Ask the FA for a break-down of the figures.

Keep_pedalling

Stephen7372 said:

Keep_pedalling said:

Stephen7372 said:

My parents owned the house, my Dad died last year and My Mother inherited the house. The house is worth is about £650K and my Mum now has savings of £350K. My Mum is 77 so she may not live a lot longer than 7 years. There is a possiblity she may have to spend a money on care at the end of her life noone knows. 
Can someone recommend a financial advisor we had a free chat with one and she seems a bit pushy and didn't really cover IHT (also mentioned a mortgage management when My Mum doesn't have one.)

Assuming your father left everything to your mother then IHT is not much of an issue as her estate will only be taxed on amounts over £1M.

The best thing she can do to prevent her estate falling into IHT territory is to start spending some of it on herself. It is pointless building up such wealth only to die with none of it spent. She could also drip feed her annual allowance to you, so you have more disposable income. It should not affect your benefits as long as you don’t simply save it.

Yes my Dad left everything to my Mum. It's just we went to a financial advisor who said we'd have a tax bill of £40K so I'm not sure where she's got that from. We do want somewhere to invest the money at the moment even if my Mum decides she wants to spend more. How do you find a financial adivsor ?

Ideally through recommendation from a friend, it is against forum rules for us to do so. 

You need an independent FA, this article from the FT might help.

https://www.ft.com/content/0f18ea78-293f-11e8-b27e-cc62a39d57a0

Stephen7372

I think I misheard her or she misspoke and said £40,000 when she what was meant was 40%. She's a bit too quick really.