INHERITANCE TAX UN-USED

Hunkydory22

I have two scenarios Iam looking for help with, but I would think the answer to both will be the same or similar.

1. Iam sorting my mum's affairs for her. I have an LPA for her finances and her health. My dad left all of his estate to my mum. I am assuming that means all of my dad's nil-rate will have passed to my mum. But, can this just be taken for granted? I can't find any paperwork from the tax office to confirm this.
The question of inheritance tax planning has been raised and I know my mum hasn't put anything in place. 


2. As Iam sorting out my mum's affairs it's made me think of my own. My husband died and because we had been separated for many years I didn't know until several months after his death. I have no contact with his children from a previous marriage, or any of his family, have no idea what he left in his estate (except Iam pretty sure he did not own any property). 
So I have no idea if he left any un-used allowance and if he did, am I entitled to it?

I've just phoned the inheritance tax help line and they say I would have to engage a solicitor to find out about both scenarios.

Does anyone know if there is a way to find out, without paying out money I don't have, to a solicitor?

Thank you in advance for any advice

RAS

A couple of things re dad,

1. Did they owned a home, jointly or as tenants in common. Any sole savings, investments or accounts? If so, someone had to garner them in from the financial providers. Who did that?

2. If you have LPA, is that because mum lacks the mental ability to manage her finances? Sadly unless she asks you to think about inheritance tax planning, you are not allowed to engage in it, and even then it's fraught with problems.

Your sole responsibility is to act in her best interests. It's quite possible that she has enough to fund care for a decade and still have money left over, but she might actually need funds for two decades.

Keep_pedalling

Hunkydory22 said:

I have two scenarios Iam looking for help with, but I would think the answer to both will be the same or similar.

1. Iam sorting my mum's affairs for her. I have an LPA for her finances and her health. My dad left all of his estate to my mum. I am assuming that means all of my dad's nil-rate will have passed to my mum. But, can this just be taken for granted? I can't find any paperwork from the tax office to confirm this.
The question of inheritance tax planning has been raised and I know my mum hasn't put anything in place. 

If probate was not required on his death you won’t have any paperwork showing this.

2. As Iam sorting out my mum's affairs it's made me think of my own. My husband died and because we had been separated for many years I didn't know until several months after his death. I have no contact with his children from a previous marriage, or any of his family, have no idea what he left in his estate (except Iam pretty sure he did not own any property). 
So I have no idea if he left any un-used allowance and if he did, am I entitled to it?

I've just phoned the inheritance tax help line and they say I would have to engage a solicitor to find out about both scenarios.

Does anyone know if there is a way to find out, without paying out money I don't have, to a solicitor?

Thank you in advance for any advice

If his estate required probate then you can download those records as grey are public records and if he had a will you can see that as well.

https://probatesearch.service.gov.uk/

If his estate did not require probate then your executors are going to have difficulty in establishing what the size of his estate was and how much if any TNRB is left.

Hunkydory22

Thanks Keep_pedalling and RAS
I've just done a probate search on both my dad and husband and nothing comes up on either of them.

My mum & dad had everything in joint names except my dad's work pension and that has passed to my mum, their house was mortgage free. My mum does have her faculties, so I do explain and ask what she would like to do regarding her finances then assist her do to it. However, I think inheritance tax is to much for her to understand.
Actually, it's my sister and I that have joint LPA and it's my sister that's raised the issue. She & my mum looked after my dad's estate. My mum has told me my sister hasn't spoken to her about inheritance tax. 
Right now my mum is in good health especially for her age and I would be amazed if we need to even think about inheritance tax. Care home fees will take most of her savings unless she passes with-in 2 years.
I was hoping to find a way that would show my sister we don't need to think about it particularly if mum has inherited my dad's nil-rate allowance. 
I think my sister just has to accept that we cross the bridge when it happens. If I have understood correctly any tax due would come out of mum's estate, so tax man might get some of it but it's not money we have to personally find. 

What an awful subject this is. 

RAS

Does your sister understand that with all of dad's IHT allowances, mum's estate wouldn't pay IHT unless it exceeds £1m?

Hunkydory22

Iam guessing not, but neither did I to be honest. I thought, if mum has inherited all of dad's nil-allowance it would give mum a total of £650000 nil-allowance at current rates. 
Just to be clear, my mum won't be leaving any property. She's had to go into a care home so house is sold. 

Savvy_Sue

Ah, but there's an allowance for if the house is sold before death - I don't have details but I'm sure someone will provide them. 

Keep_pedalling

Hunkydory22 said:

Iam guessing not, but neither did I to be honest. I thought, if mum has inherited all of dad's nil-allowance it would give mum a total of £650000 nil-allowance at current rates. 
Just to be clear, my mum won't be leaving any property. She's had to go into a care home so house is sold. 

That does not matter, selling your home to move to more suitable accommodation, such as a care home, does not prevent the RNRB being claimed if it is needed. 

https://www.gov.uk/guidance/how-downsizing-selling-or-gifting-a-home-affects-the-additional-inheritance-tax-threshold

If the house was sold for as least £350k then her estate would need to exceed £1M before you have to think about IHT. If the house was sold for less than that then it will be £650k plus the value of the house.

relaxtwotribes

If your Dad’s will bequeathed 100% to your Mum then that will be evidence that his NRB was unused and is available for transfer to Mum, thereby giving her estate the £650k allowance you refer to.
If your Mum has recently sold a property, in order to reside in a care home, then her estate will also have a Residential NRB.  The amount will depend on the value of the property sold and that will also affect any transfer of your Dad’s RNRB. Others here will provide better details.

Hunkydory22

Thank you so much everybody. 
I don't think my sister realises that mum is likely to have RNRB (I didn't)- the house has indeed been sold to ensure she's in a decent care home and thankfully very happy. 
Lots of reading for both of us and Iam sure this will put my sister's concerns to rest.