Inheritance tax

ric777

Forward planning for my partner.  When her mother died a few years ago everthing was left to her father with no inheritance tax liability.  His estate is now worth about £1m, roughly 50:50 house and savings.  He has willed the entire estate to his two daughters.  I am not up to date regarding the treatment of carry forward of any previous allowances and hence the amount, if any, of liability on his death.  Any advice gratefully received

Keep_pedalling

His estate will be able be able to claim his NRB and residential NRB plus the transferable NRBs from his wife giving a total exemption of £1M.

You should also consider your own forward planning especially if you are not married or in a civil partnership.

Mojisola

ric777 said:

Forward planning for my partner.  When her mother died a few years ago everthing was left to her father with no inheritance tax liability.  His estate is now worth about £1m, roughly 50:50 house and savings.  He has willed the entire estate to his two daughters.  I am not up to date regarding the treatment of carry forward of any previous allowances and hence the amount, if any, of liability on his death.  Any advice gratefully received

If his monthly income is more than he spends, he could start gifting out of income to stop the estate getting any larger.

He could gift some lumps sums - if he lives for more than seven years, those amounts will be free of inheritance tax.

ric777

Cheers, that's what I thought but wasn't totally sure