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Inheritance tax on property from both my divorced parents

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My parents have been divorced over 20 years. Both have remarried. Both have their own properties which they will be leaving to me their son in their will.  Both are still alive but probably in their last 10 years of life. 

One property from my mother which she currently lives in is worth 350,000 gbp . My father has a property which he rents out and is worth 450,000 gbp which he has left to me in his will. The property he lives in is owned by his current wife and dhe will leave test to charity. 

Will any inheritance tax be charged on either my mother's or my father's property as Both are under the 500,000 gbp threshold and in their redoecyive will are left to myself their only living son. 

Please advise ? 


Comments

  • poseidon1
    poseidon1 Posts: 1,387 Forumite
    1,000 Posts Second Anniversary Name Dropper
    Your father's investment property will obviously not attract the residence nil rate band of £175k (he does not have a residence!) so he only has his single NRB of £325,000 to shelter the £450k gift to you. On these numbers therefore £125k exposed to 40% IHT.
  • Keep_pedalling
    Keep_pedalling Posts: 20,883 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    Under the current rules your father’s estate will have an IHT liability, you mother’s may do depending on what savings she has and who she would leave them too. 
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