Inheritance tax question

Thisisimpossible123

My father died 18 months ago. My mother is 82 and claims she doesn’t have long left. I have one sibling and the estate would be divided equally between us when she passes. Mums estate is currently valued around £600,000 including the house. 

Am I right in thinking that as 2 siblings we would get around £500,000 between us and pay inheritance tax on everything above that? 

Also, my (deceased) fathers half of the house has passed to my mother. Is there an allowance for each of them? Effectively doubling the limit?
 I have researched this endlessly with no luck. Any clarity would be very much appreciated. 

TonyMMM

Assuming this is in England/Wales and that your father left his estate all to your mother, then his nil rate band of £325k transfers to her and she will have an allowance of £650k before Inheritance tax comes into play. On top of that there are further residence based allowances if the family home is part of the estate which could take it up to £1m.

On the figures you quote, there shouldn't be any IHT to pay (as things currently stand).

Marcon

Thisisimpossible123 said:

My father died 18 months ago. My mother is 82 and claims she doesn’t have long left. I have one sibling and the estate would be divided equally between us when she passes. Mums estate is currently valued around £600,000 including the house. 

Am I right in thinking that as 2 siblings we would get around £500,000 between us and pay inheritance tax on everything above that? 

Also, my (deceased) fathers half of the house has passed to my mother. Is there an allowance for each of them? Effectively doubling the limit?
 I have researched this endlessly with no luck. Any clarity would be very much appreciated. 

I don't know where you've been researching, but hopefully this link will answer your question fully: https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band

(and the good news, based on what you've said in your post, is there shouldn't be any IHT to pay when your mum dies).

Keep_pedalling

If you father left every thing to your mother then none of his nil rate bands will have been uses so can be transferred to your mother’s estate. Her estate would have 2 NRB + 2 x residential NRBs to utilise  so IHT would not apply unless it exceeded £1M.

If you’re father left anything to others then that would reduce his transferable NRB by an equivalent amount.

getmore4less

 I have researched this endlessly with no luck.

Research

Transferable nil rate band
Residential nil rate band.