A question about : Inheritance tax question
Really wan't sure which board to put this on - moderators, please feel free to move it to a more appropriate board.
Can anyone help me understand a UK inheritance tax issue?
My dad's father-in-law died a few years ago but didn't leave a will. The house he had lived in with his wife for many years was in his name, but I presumed that his house would naturally be inherited by his wife and that she wouldn't have to pay inheritance tax.
Apparently, it has now come to light that, since there wasn't a will, the house was bequeathed, by the state, to his wife and four children. And now, apparently, the government is demanding 40% of the value of the house plus a Ј60 fine as the payment is now 5 years in arrears.
Does this sound right? Anyone got any advice?
KG
Best answers:
- If there is no will then the person has dies "intestate" and there are law written as to who gets what. These are called the "intestacy" laws/rules.
You should be able to find these if you google.
I am not a lawyer and the following is off the top of my head, but I believe the wife gets a certian amount (Ј125K off the top of my head) and then children get some, so yes it sounds about right.
Inhertiance is tax free up to a certain limit (I think Ј265K this tax year but would have been lower 5 years ago).
If the estate was large, then yes inheritance tax is due at 40%.
So broadly spekaing if it is a large estate then it sounds about right.
If the estate is large then my advice is to get some propoper legal advice for a professional, preferably one that specialises in estates and inheritances.
For anyone else reading, this kind of confusion and inheritance tax, can all be avoided by forward planning (I realise that's no use to you KG - but worth pointing out to others).
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