Estate planning - confused about what I am entitled to

tonycable

Hi All
Firstly, I know that i might need some professional advice on this, but I also like to have a bit of an idea as to what I am talking about first, so hoping some of you can help me and give me some advice.
First some context - My dad unfortunately passed away last month, and me and my mum are trying to sort out the estate, but we are getting totally confused into what I am legally entitled to, and don't want to do something wrong and be hit with a big IHT bill, or do we want to do something that is lawfully wrong.  My mum and dad were married at the time of passing.

There was a will.

They owned the family house (which i lived in) as tenants in common in a 50/50 split.  This has been passed onto me in the will, and is valued at £275,000.

Also the will said that i am to be left £325,000.

This is where I am now getting confused.

Does the value of the house count towards the £325,000 that I have been left, so I only have £50,000 that is mine from the estate?

I'm also reading that as the house was left to me, the allowance goes up to £500,000.  Is this the case, and as the will says £325,000 can I not go over that? Does the house value still come out of this?
What am I legally entitled to claim from the estate without being hit by a IHT bill?

From a family point of view, my mum (and dad if he was alive) would be saying maximize whatever you can from the estate to put into my name, regardless of the will - just don't be hit by any IHT down the line, but i just don't know what I can legally do.

Is someone able to explain it in simple terms to me please?

Also, when it comes to savings, how are these passed on?  I know he had bonds, ISAs, Premium bonds and shares, but i don't know if they get transferred as is, or they go into a savings account?  Are ISA's still tax free or does everything count?

Apologies for the long post, but this is new to both me and my mum, and we want to make sure we get it right, and also if we do get professional advice we know what we are going in with in case there are questions or we want to do something different.

Thanks in advance.

bobster2

tonycable said:

There was a will.

They owned the family house (which i lived in) as tenants in common in a 50/50 split.  This has been passed onto me in the will, and is valued at £275,000.

If your parents owned the house 50/50 as tenants in common - presumably your father would only have been able to leave you his share of the house in his will - and your mother still owns the other 50%.

p00hsticks

tonycable said:

There was a will.

first things first - who is named as executor ? And what do you think is the total value of his estate ? 

tonycable said:

They owned the family house (which i lived in) as tenants in common in a 50/50 split.  This has been passed onto me in the will, and is valued at £275,000.

Also the will said that i am to be left £325,000.

What exactly is the wording of the will ?

tonycable said:

From a family point of view, my mum (and dad if he was alive) would be saying maximize whatever you can from the estate to put into my name, regardless of the will - just don't be hit by any IHT down the line, but i just don't know what I can legally do.

You (or rather the executor if that's not you) can't ignore what the will says - it's legally binding on them to follow the instructions. However it is possible for one beneficiary to give up part of their inheritance to someone else via a 'Deed of Variation' if they wish

tonycable said:

Also, when it comes to savings, how are these passed on?  I know he had bonds, ISAs, Premium bonds and shares, but i don't know if they get transferred as is, or they go into a savings account?  Are ISA's still tax free or does everything count?

It depends. Premium bonds can only stay in the draw for up to a year after the death I think. Shares can either be sold by the estate or transferred to a beneficiary.  
An ISA retains its tax free status until cashed in or until three years after the death. If left to spouse then they can inherit the ISA and retain its tax free status - the ISA provider can arrange this. 

tonycable

That is correct - I have been left his share of the house, so I own 50%, and my mum owns 50%.  His share was valued at £275,000 so the value of the house is £550,000.