Inheritance Tax and Intestacy rules
Can’t find a thread for this so hope this is okay to post.
father-in-law died intestate leaving a living wife. His total personal estate
is valued at £350k which is £25k over his inheritance tax allowance threshold.
Now as I understand it, if his wife inherited everything there would be no
inheritance tax to pay.
There are however 2 surviving children, and under the rules of intestacy, the
first £270k of his estate would go to his surviving wife. Of the remaining £80k,
50 percent would go to his wife and the other 50 percent would be divided between
his children. This would mean that his wife did not in fact inherit his whole estate,
so my question is … would inheritance tax have to be paid because of this, or
would it be deemed his wife inherited his whole estate except for the £40k and
so avoid inheritance tax?
Any advice would be greatly appreciated.
Did you know there's an MSE app?
It's free & available on iOS & AndroidMSE App
Regifting: good idea or not?
Add your two cents to the discussionMSE Forum
Energy Price Guarantee calculator
How much you'll likely pay from AprilMSE Tools
If there is property was it joint tenants with his wife? Were pensions/insurances not written in trust?
Thanks so much for your reply, this is as I had hoped it would work. So basically, her allowance would be £610k, unless of course she was to take advantage of the 'residence nil-rate band' by passing on her main residence to her children.