Tax applicable.

Misteek

My friends nother paid for a house for him 3 years ago. At the value of 299k  .. the house was in my friends name . However  the payment  was made outright by his father. Unfortunately the father has passed now.

Is there any IHT owed as he passed away within 7 yrs? Secondly does he need to let the HMRC know? Etc fill any forms out?

[Deleted User]

What was the value of your friend’s father’s estate? What other gifts were made? What was bequeathed to your friend’s mother? 

Misteek

[Deleted User] said:

What was the value of your friend’s father’s estate? What other gifts were made? What was bequeathed to your friend’s mother? 

Mother passed away already a couple of years ago... there were no other gifts made to him. Only a purchase of a house 2 yrs ago.

Misteek

Misteek said:

[Deleted User] said:

What was the value of your friend’s father’s estate? What other gifts were made? What was bequeathed to your friend’s mother? 

Mother passed away already a couple of years ago... there were no other gifts made to him. Only a purchase of a house 2 yrs ago.

Also just to add he has left another propwrty for 200k for his other daughters to share with his widowed wife . 4 of them have an equal share via a will 

theoretica

Whoever is the executor of the will will need to know about this gift and they are the person who will need to include it in forms. If the father and mother were divorced when mother passed away, it looks like there might be some inheritance tax due if he left more than the two properties to his children.

Misteek

theoretica said:

Whoever is the executor of the will will need to know about this gift and they are the person who will need to include it in forms. If the father and mother were divorced when mother passed away, it looks like there might be some inheritance tax due if he left more than the two properties to his children.

However.... he paid for a house for his son 2 years  ago which was in the sons name. Does that count?

getmore4less

Gift 2 year ago becomes a failed PET.
It was 3 years in the opening post.

With a gift of £299k it will be the rest of the estate that may have IHT liability.

How can he have left part of another house to his widowed(dead) wife

Executor should be dealing with this.

Grumpy_chap

Misteek said:

My friends nother paid for a house for him 3 years ago. At the value of 299k  .. the house was in my friends name . However  the payment  was made outright by his father. Unfortunately the father has passed now.

Is there any IHT owed as he passed away within 7 yrs? Secondly does he need to let the HMRC know? Etc fill any forms out?

Did the mother pay for the house for him?
Or did the father pay for the house?

I understand they are both now passed, but the value of the gift and the PET should be assessed as the estate of whichever parent actually bought him the house.

Misteek

Grumpy_chap said:

Misteek said:

My friends nother paid for a house for him 3 years ago. At the value of 299k  .. the house was in my friends name . However  the payment  was made outright by his father. Unfortunately the father has passed now.

Is there any IHT owed as he passed away within 7 yrs? Secondly does he need to let the HMRC know? Etc fill any forms out?

Did the mother pay for the house for him?
Or did the father pay for the house?

I understand they are both now passed, but the value of the gift and the PET should be assessed as the estate of whichever parent actually bought him the house.

The father paid for it. 

There probably is an executor. But atm the siblings are not talking  to each other properly. So he is strrssed out that if he has to pay IHT hr might have to sell and downsize.

Father made a will to leave a percenttage to his new wife. As she wasnt on the deeds.

Jeremy535897

Father (assuming he is the actual donor) had a nil rate band of at least £325,000. Unless part or all of that nil rate band was used by other gifts that were both made within seven years of father's death, and made earlier than the gift to your friend, there can be no inheritance tax on the gift of £299,000 (assuming this is the correct figure).

Misteek

Jeremy535897 said:

Father (assuming he is the actual donor) had a nil rate band of at least £325,000. Unless part or all of that nil rate band was used by other gifts that were both made within seven years of father's death, and made earlier than the gift to your friend, there can be no inheritance tax on the gift of £299,000 (assuming this is the correct figure).

Yeah so time line is .. 3 yrs ago. A property was paid by the father for 299k to my friend.

Father passed away this year. He has gifted his house to other siblings and new wife as per his will. This house is arounf 350k.

So would that mean the first house at 299 will be excempt from the IHT as it was before the second house upon death or does it be shared? Amongst all parties?