inheritance tax threshold advice

dinosaur66

need guidance on what my mothers inheritance tax threshold is

is it £325k or £500k

my mother is 84

she married in 1964 / my father left in 1969 but they never divorced

my father died in 2011 - he had no money or property i looked after him financially

my mother had a partner she lived with from 1972

he died in 2015

he had no money or assets i looked after him financially /property wise

my mothers estate consists of joint owner of a £600k property with me her son which i paid 100% of the total in 2003 for her to live in with her partner who i considered as my step father although this was not a formalised title

it was put in joint ownership equal 50% son and mother

she has £60k in savings from an inheritance and is due to get about 80k in the next year from an inheritance

so total £300k property and £140 k savings max total £440k

as my biological father never contributed anything finacially is my mothers threshold for inheritance tax 325K ?

Keep_pedalling

As they never divorced then both transferable NRBs are available to her estate. As he died insolvent none of his nil rate band was used up and all his transferable NRB is available to be transferred to her estate. This allows you to avoid claiming any of her residential NRB which means you don’t have to file an IHT return.

You will probably need probate to cover the two inheritances but if you are inheriting her share of the house you won’t need it to deal with the property.

The one tax element you will need to consider is CGT on your share of her home if it is to be sold.

dinosaur66

thank you for your advice

that is a great help

i assumed wrongly that because they were not together for so long and that he never contributed that the nrb was not transferable

RAS

The NRB allowance requires the marriage to exist in law at the time of the first death but does not require the spouses to be living as a couple.

dinosaur66

thank you RAS