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  • FIRST POST
    • cambb
    • By cambb 5th Jan 18, 6:00 PM
    • 175Posts
    • 4Thanks
    cambb
    Inheritance Tax question
    • #1
    • 5th Jan 18, 6:00 PM
    Inheritance Tax question 5th Jan 18 at 6:00 PM
    Hi,
    My Grandfather recently passed away and i'm working through his estate and i have a question regarding his deceased spouse. His wife died in Feb 1997 and i believe the IHT was 200K. In the probate doc say she passed on 83k to my grandfather. His estate is worth 315k and a property worth 150k. Therefore with her unused IHT 117k + the 425k for him I wont be liable. Is that correct? Thanks
Page 1
    • getmore4less
    • By getmore4less 5th Jan 18, 6:11 PM
    • 32,192 Posts
    • 19,351 Thanks
    getmore4less
    • #2
    • 5th Jan 18, 6:11 PM
    • #2
    • 5th Jan 18, 6:11 PM
    Read up on transferable nil rate band so you have a better understanding of how that works.

    Although probably not needed for this estate also worth looking at the newer residential nil rate band.

    There is enough of an estate to potentially review IHT planning for the beneficiaries.
    • Keep pedalling
    • By Keep pedalling 5th Jan 18, 6:22 PM
    • 5,096 Posts
    • 5,681 Thanks
    Keep pedalling
    • #3
    • 5th Jan 18, 6:22 PM
    • #3
    • 5th Jan 18, 6:22 PM
    Hi,
    My Grandfather recently passed away and i'm working through his estate and i have a question regarding his deceased spouse. His wife died in Feb 1997 and i believe the IHT was 200K. In the probate doc say she passed on 83k to my grandfather. His estate is worth 315k and a property worth 150k. Therefore with her unused IHT 117k + the 425k for him I wont be liable. Is that correct? Thanks
    Originally posted by cambb
    It does not work like that. If the 83k your GM left your GF was her entire estate then none of her nil rate band was used up, in which case all of her nil rate band can be transferred to his estate. This is based on percentage of the original nil rate band not the value as it was then, so the combined nil rate band will be 650k.

    If she left any of her estate to anyone else then the amount of the nil rate band is reduced accordingly. So for example if she left you 20k that would have used uo 10% of her nil rate band so only 90% can be transferred.

    Even if she used up her entire nil rate band by leaving 200k to others, you can use, the primary residents nil rate band (2x 100k) so there will be no IHT to pay if the bulk of his estate is going to his direct descendants.
    • cambb
    • By cambb 6th Jan 18, 7:22 AM
    • 175 Posts
    • 4 Thanks
    cambb
    • #4
    • 6th Jan 18, 7:22 AM
    • #4
    • 6th Jan 18, 7:22 AM
    Thanks for the replies.

    The bulk of the estate is going to 2 great grandsons ie 80%. My GM estate was only passed my my GF and nobody else.
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