Inheritance tax in this scenario? - Mum will be selling family home for £350k after dad died.

canaldumidi

You won't pay any inheritance tax, as you are a Beneficiary. It is the dad's Estate that (may) have to pay IHT before his assets (including the property) can be given to the Beneficiaries.

You need to find out:

* total value of dad's Estate (property value + bank acounts + investments + car + yacht + gold ring +++...) and whether it is greater than the IHT threshold

* who owned the property before he died, and how eg mum and dad as 'Joint Tenants' or as 'Tenants In Common'.

* whether dad left a will, and what it says

* who is the Executer of his will, or if no will, who is the Administrator of his Estate

macman

Deleted_User said:

Thank you all for taking the time to respond. 

I'm afraid I don't even understand some of the questions I'm being asked, and I don't know the answers to really any of them. 

I think I'm going to need more help on figuruing all of this out. I feel very thrown in at the deep end. Where can I go to get help on this?

Are you not able to calculate the approximate value of the estate? Or even tell us how the property was owned? If it's below the threshold, then everything else is irrelevant, as no IHT will be due. No tax is due on bequests made by your father, or subsequent gifts made by your mother.
If IHT is due, it is not paid by you anyway, it's paid by the estate. Which may or may not result in the reduction of your 25% share, if that is how his will divided it.
The questions you are being asked are the same ones that a solicitor or estate planner is going to ask you, so you need to do some legwork yourself first anyway.

Snow_Angel

I can't help with your questions I'm afraid but I do want to say I'm sorry about the loss of your dad. This is one of the worst things about when a parent dies - dealing with your grief at the same time as dealing with, sometimes complicated estate and practical issues. It can be very overwhelming. Maybe write down some of the questions people have asked in their responses to give you a list of things to look up. When my parents died it made it easier for me to have a clear 'plan'. There is a useful starting point at https://www.gov.uk/inheritance-tax