IHT

SVaz

When there is property held by an unmarried couple ( or siblings etc.) as Joint tenants and one dies,  is the whole value of the equity/ property counted for IHT purposes?   

Say the deceased had life cover ( but hadn’t written it in trust ) of £350k and there was also £100k of equity in the property - would there be an IHT bill of £50k ?  

Most people seem to have no idea about the Joint tenants / Tenants in common differences regarding IHT or about writing life insurance in trust. 

Keep_pedalling

SVaz said:

When there is property held by an unmarried couple ( or siblings etc.) as Joint tenants and one dies,  is the whole value of the equity/ property counted for IHT purposes?   

No it would still be based on 50% of the value

Say the deceased had life cover ( but hadn’t written it in trust ) of £350k and there was also £100k of equity in the property - would there be an IHT bill of £50k ?  

Most people seem to have no idea about the Joint tenants / Tenants in common differences regarding IHT or about writing life insurance in trust. 

The first £325k would be covered by the NRB, leaving £75k subject to IHT so an IHT liability of £30k. 

It seems a lot of unmarried couple are also unaware of the consequences of not being married or in a CP where IHT is concerned.