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Inheritance tax
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ellywellywoo
Posts: 107 Forumite


Im hoping someone please can give me some advice. My father passed away in November 2022 and left my mum who is currently 85. Everything was left to her. My sister and I with mum have sorted out all the bills, advising various authorities of his passing including the HMRC to sort out their pensions etc. Everything was in joint names.
Now, we not sure about his allowance for inheritance tax? Do we need to sort anything on this ?
Their house is worth around 900,000 and they did equity release which looking at the last statement they owe about £128,000 to date. There are no other assets apart from the contents of the house. These don't include fine art or jewellery !!
So my question is will my sister and I be liable for inheritance tax on mums passing? Mum knows I am asking this question. She is the one asking me to ask you guys and wants to know can we do anything (legal ) to reduce the amount if we have to pay ? Thank you
Now, we not sure about his allowance for inheritance tax? Do we need to sort anything on this ?
Their house is worth around 900,000 and they did equity release which looking at the last statement they owe about £128,000 to date. There are no other assets apart from the contents of the house. These don't include fine art or jewellery !!
So my question is will my sister and I be liable for inheritance tax on mums passing? Mum knows I am asking this question. She is the one asking me to ask you guys and wants to know can we do anything (legal ) to reduce the amount if we have to pay ? Thank you
0
Comments
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There is no need to do anything with father’s inheritance tax allowance now. It will still be available for you to use after your mother passed since everything was left to your mother.Mother will also have her own allowance.
If the property is left to you and your sibling ( as direct descendants) you will also be able to utilise the residential nil rate band for both parents.So that is 2x£325k + 2x£175k = £1m allowance. Hopefully of there is nothing in the way of savings then this will cover it all. I don’t know exactly how the equity release is treated (someone else will be along soon) but would expect it would reduce the total value of the estate. Has the money released all been used? Or gifted?1 -
No IHT but your mother might like to consider downsizing as being asset rich and cash poor is not a great way to live out your latter years.1
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Thank you for your reply. The money released was used up a few years ago. Maintenance on the house and a holiday I believe. a bit of savings but not very much. Not to to take us up to £1m.0
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Keep_pedalling said:No IHT but your mother might like to consider downsizing as being asset rich and cash poor is not a great way to live out your latter years.1
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Mum's 85. I would do further equity release if needed, rather than downsize, unless Mum wanted to. She has every right to stay in her home and has the means to do so.
As a rule, I loathe equity release but in this instance it seems perfectly reasonable.
Good luck for the future.3
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