Help with inheritance tax matters and in general all of that paperwork after death

naedanger

walnutters89 said:

Hi to be honest I don't know how much mums house is worth I just thought in my mind it would be £450k but I'm a layman add to that £30k in money in the bank that's quite tight to the £500k limit to be IHT tax free,that was why that one over the road at £520k concerned me.I've looked after my mum  for years so my savings have gone,and I've always lived here and so has my son part time,it's made me feel a little jittery.

In our situation I can only use mums £325k nil rate balance and the £175 residential nil rate balance as after I found paperwork my dad had transferred the home to my mother a few years before his death and so I haven't got dad's nil rate balance to use as well as i first thought

No, the limit is £825,000 if you father on his death left his full estate to your mother. The fact he transferred his home to your mother a few years before his death just prevents you from claiming a further £175k allowance.

You can still transfer his normal nil rate band of £325,000 to your mother's estate provided he left his full estate to your mother. 

walnutters89

naedanger said:

walnutters89 said:

Hi to be honest I don't know how much mums house is worth I just thought in my mind it would be £450k but I'm a layman add to that £30k in money in the bank that's quite tight to the £500k limit to be IHT tax free,that was why that one over the road at £520k concerned me.I've looked after my mum  for years so my savings have gone,and I've always lived here and so has my son part time,it's made me feel a little jittery.

In our situation I can only use mums £325k nil rate balance and the £175 residential nil rate balance as after I found paperwork my dad had transferred the home to my mother a few years before his death and so I haven't got dad's nil rate balance to use as well as i first thought

No, the limit is £825,000 if you father on his death left his full estate to your mother. The fact he transferred his home to your mother a few years before his death just prevents you from claiming a further £175k allowance.

You can still transfer his normal nil rate band of £325,000 to your mother's estate provided he left his full estate to your mother. 

Hi yes he did leave everything to my mother as worded by his will although I don't think he left anything as such as he didn't have any money.That would make a great differrence if his nil rate band could be used.I thought that the house had to be left in the will.He transferred the home in 95 and died in 99.

All I have is my dads will and death certificate to send the HMRC when the time comes if that's all I need

Mickey666

walnutters89 said:

Hi to be honest I don't know how much mums house is worth I just thought in my mind it would be £450k but I'm a layman add to that £30k in money in the bank that's quite tight to the £500k limit to be IHT tax free,that was why that one over the road at £520k concerned me.I've looked after my mum  for years so my savings have gone,and I've always lived here and so has my son part time,it's made me feel a little jittery.

In our situation I can only use mums £325k nil rate balance and the £175 residential nil rate balance as after I found paperwork my dad had transferred the home to my mother a few years before his death and so I haven't got dad's nil rate balance to use as well as i first thought

I'm not sure that's correct.  My understanding is that there's are no tax issues with gifts between spouses, so the transfer of the house before your Father's death would have no IHT implications (wouldn't even be a PET for a transfer to a spouse).  So I don't understand why that transfer would reduce his estate's NRB as far as IHT is concerned.  I'm not 100% sure about this but it's important enough to get more informed advice.
But even if the house transfer is treated as a PET, all that would mean is that the house value (after taper rules) would be transferred back to father's estate for IHT purposes.  The entire estate could then be transferred to Mother completely tax-free along with Father's estate NRB, giving Mother around £1m before IHT is payable on her estate.
At least, that's my understanding.

xylophone

 I haven't got dad's nil rate balance to use as well as i first thought

But you do have his transferable nil rate band  (£325,000) as he left his whole estate to your mother.

walnutters89

xylophone said:

 I haven't got dad's nil rate balance to use as well as i first thought

But you do have his transferable nil rate band  (£325,000) as he left his whole estate to your mother.

That's great, I at first thought the house transfer a few years before he died upset that,so that's good news if that's the case

getmore4less

The residential nil rate band is transferable it is not lost because he transferred the house to the wife. 

The dad died in 1999 the RNRB could not have been used it did not exist then. 

1bellagio

Hi Everyone,
Looking for some assistance here. Our mother passed last August 2020. Her estate was less than 50k and her bank accounts were passed to her husband our father. While we are still going through her paperwork we find ourselves in an unfortunate position. My father passed on New Years Day 2021 and we now find ourselves swamped in an inheritance conundrum.
The will for our father was a straight forward split three ways between the children. Our fathers estate including the house which he owned is just shy of 900k. Reading government guidelines, it appears that we have to pay large amounts on inheritance tax. Loosing both parents so close together has caught us out. Where do we go from here? Do I need a specialist inheritance lawyer? I'm new to all of this and probably blurred by the grief.

Also, am I correct in saying that I need to insure the house.

Thanks for any assistance in advance.

1bellagio

1bellagio said:

Hi Everyone,
Looking for some assistance here. Our mother passed last August 2020. Her estate was less than 50k and her bank accounts were passed to her husband our father. While we are still going through her paperwork we find ourselves in an unfortunate position. My father passed on New Years Day 2021 and we now find ourselves swamped in an inheritance conundrum.
The will for our father was a straight forward split three ways between the children. Our fathers estate including the house which he owned is just shy of 900k. Reading government guidelines, it appears that we have to pay large amounts on inheritance tax. Loosing both parents so close together has caught us out. Where do we go from here? Do I need a specialist inheritance lawyer? I'm new to all of this and probably blurred by the grief.

Also, am I correct in saying that I need to insure the house.

Thanks for any assistance in advance.

Sorry, Forgot to add that our mother owned half the property before it was passed to our father. Does this mean that half of the property forms part of her estate?

JGB1955

1bellagio said:

1bellagio said:

Hi Everyone,
Looking for some assistance here. Our mother passed last August 2020. Her estate was less than 50k and her bank accounts were passed to her husband our father. While we are still going through her paperwork we find ourselves in an unfortunate position. My father passed on New Years Day 2021 and we now find ourselves swamped in an inheritance conundrum.
The will for our father was a straight forward split three ways between the children. Our fathers estate including the house which he owned is just shy of 900k. Reading government guidelines, it appears that we have to pay large amounts on inheritance tax. Loosing both parents so close together has caught us out. Where do we go from here? Do I need a specialist inheritance lawyer? I'm new to all of this and probably blurred by the grief.

Also, am I correct in saying that I need to insure the house.

Thanks for any assistance in advance.

Sorry, Forgot to add that our mother owned half the property before it was passed to our father. Does this mean that half of the property forms part of her estate?

Rather than tag onto someone else's post, you may get more answers if you start your own.  It is quite possible that the first £1M is free of IHT...but others will be able to answer that with more confidence than I have!

1bellagio

JGB1955 said:

1bellagio said:

1bellagio said:

Hi Everyone,
Looking for some assistance here. Our mother passed last August 2020. Her estate was less than 50k and her bank accounts were passed to her husband our father. While we are still going through her paperwork we find ourselves in an unfortunate position. My father passed on New Years Day 2021 and we now find ourselves swamped in an inheritance conundrum.
The will for our father was a straight forward split three ways between the children. Our fathers estate including the house which he owned is just shy of 900k. Reading government guidelines, it appears that we have to pay large amounts on inheritance tax. Loosing both parents so close together has caught us out. Where do we go from here? Do I need a specialist inheritance lawyer? I'm new to all of this and probably blurred by the grief.

Also, am I correct in saying that I need to insure the house.

Thanks for any assistance in advance.

Sorry, Forgot to add that our mother owned half the property before it was passed to our father. Does this mean that half of the property forms part of her estate?

Rather than tag onto someone else's post, you may get more answers if you start your own.  It is quite possible that the first £1M is free of IHT...but others will be able to answer that with more confidence than I have!

Thanks will do now