Possible Labour Changes in Inheritance Tax

NateW

Both my parents have passed in the last 10 years, my mother lastly 5 years ago. Being the sole beneficiary, with no inheritance tax due under current legislation, I have stupidly not sort probate(partly due to exhaustion of being a carer and my own cancer scare) in those 5 years. With a new budget due end of Oct 2024, and possible changes in thresholds for various taxes, if I was to submit now for probate, could those changes to IHT be backdated? Thanks.

RAS

The first question is do you need probate. Did either estate include property, stocks and shares or pension payments that demanded probate?

NateW

Yes, I believe I need probate, a property and shares was included. Thanks.

RAS

It really would have been in your best interests to got this sorted sooner.

Did your parents own as joint tenants, or tenants in common? 

Keep_pedalling

You will almost certainly also have to complete a IHT return even if no IHT was due. Changes to IHT rules is not going to effect the estates of those who have already died, but you still need to sort this out ASAP otherwise you are going to leave your executors are going to have a very hard job on there hands as they will have to sort out both estates. 

NateW

Yes RAS, I have been stupid, though have had a lot going on in personal life and knowing there was no tax to pay it was something I just let slide. Re tenants in common/joint, my father in his will left half the property to me, the other half remaining in my mother's name. Again, stupidly I didn't action his will, I was dealing with my mother having cancer and again it didn't seem a priority. Thanks for your reply.

NateW

Thanks KP, yes I believe I will have to complete a IHT. I am the executor, or was joint with a solicitor firm, but they have relinquished interest. Good to hear that any changes will not impact estates of those who have already died, that was my concern. Thanks for your reply too,

RAS

You need to check the Land Registry if you don't have the deeds, costs £3. Was the property owned as Joint Tenants or Tenants in Common, the latter is usually indicated by a restriction on sale.

Did your father leave half to you and mum, with a life interest to mum?

Who has lived in the house over the last 5 years?

NateW

Thanks, I'll do that re The Land Registry, I haven't seen any deeds. It would have been owned as joint tenants.

Yes, he left half to me, the other half to my mum. No mention of life interest as I gave up work to care for them both and was living with them. Also, I'm not the type to force my mother to sell.

Only myself since my mother passed.

Thanks

RAS

If it was joint tenants, then they both owned the property 100% and when dad died mum became the sole tenant, so dad couldn't leave you half. It wouldn't be the first thread on MSE when this happened.

If it was Tenants in Common, he could leave you half. 

This needs clarifying because it is likely that the value of the house has increased, and perhaps the shares. Because you have delayed probate, there may be a Capital Gains Tax liability. 

NateW

Afraid I'm ignorant to the terminology, I do know that he left me half in his will, so then they must have been tenants in common. 

I do not think the house will have increased that much, the shares would have but in total the value of the estate is £400-425k.