Inheritance tax

LeatherBoot12

My wife died 4 months ago. My 2 children ( in their 30s) still live with me in my house. If I die how much inheritance tax will they have to pay to still live at home?

naedanger

Inheritance tax will only be payment on the excess over:
£325k (your nil rate band) + (£325k less any inheritance your wife left to someone other than yourself) + the lower of the value of your house or £350k. (If your estate is worth over £2million it is a bit more complicated.)

So if you inherited your late wife's whole estate, and your estate included a property worth over £350k then inheritance tax would only be payable on the excess of your estate over £1 million. So if your estate was £1.2million your estate would pay 40% of £200k = £80k.

If you want to check your own calcs post details of the amount of your estate, the value of your home and the amount (if any) your wife left to anyone other than yourself?

Keep_pedalling

LeatherBoot12 said:

My wife died 4 months ago. My 2 children ( in their 30s) still live with me in my house. If I die how much inheritance tax will they have to pay to still live at home?

Assuming your wife left everything to you and your home is worth at least £350k then nothing unless your net worth is not in excess of £1M 

Sea_Shell

IHT aside, what's the long term plan for your two children.   They could end up joint owners of the house, one of them may, at some stage want to move out and "cash in" their inheritance.  What if the other won't agree to sell, or can't buy out the other?

Do you have a will?  Does it specify the house by address?