Complicated inheritance from Australia

AlgernonChopper

Sadly my elderly aunt who lives in Sydney is dying, the beneficiary will be my eighty year old mother who lives in the UK.

Assuming the amount will be approx £400k as she has a nice property.

My mom wants to split any money three ways so she has a third and me and my sister also receive a third each. 

Does anyone have an understanding what tax including inheritance or even vat as it is from Australia we would have to pay? 

Keep_pedalling

There will be no tax to pay if your mother gifts you a share of her inheritance. If £400k is going to take her estate into IHT territory it would be advisable to  do this via a deed of variation, which prevents the gift entering her estate.

Alderbank

AlgernonChopper said:

Assuming the amount will be approx £400k as she has a nice property.

Sydney is the most expensive place in Australia, the average property there is now well over 1 million AUD.

If it's a 'nice' property expect well over £400k!

Jowwie

Not an expert. I thought Australia has scrapped IHT. Possibly nothing to pay over there so long as the property is sold promptly. Vague recollection of a 2 year time limit then capital gains applies.

Whilst it is generous of mom to split three ways, you might want to check that her own estate is not going to fall into UK IHT at some stage in the future. If so, it might be worth her considering passing on even more than she is doing. A variation on the will probably need to be done from Australia, or if elderly aunt still has capacity and is in agreement with the proposed, perhaps aunt could get her will amended to what is wanted by mom.

UK inheritance tax could change in the budget on 6th March. I doubt it personally but it keeps getting suggested.

Marcon

AlgernonChopper said:

Sadly my elderly aunt who lives in Sydney is dying, the beneficiary will be my eighty year old mother who lives in the UK.

Assuming the amount will be approx £400k as she has a nice property.

My mom wants to split any money three ways so she has a third and me and my sister also receive a third each. 

Does anyone have an understanding what tax including inheritance or even vat as it is from Australia we would have to pay? 

See https://www.ato.gov.au/individuals-and-families/deceased-estates/if-you-are-a-beneficiary-of-a-deceased-estate#