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Inheritance Tax

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  • Inheritance Tax

    Hello,
    My mother died last July and I'm the executor of the Will and have Probate granted. My father died in 1985. The problem I have is I'm selling the house at £25K-£30K more than it was originally valued by an estate agent. This takes the value of the assets over the £325K threshold. Also, The DWP are investigating if they can claim any Pension Credit payments back. My questions are, can I use my fathers IHT allowance on top of my mothers, ie £650K?. Can I deduct any return payment to the DWP from the asset total?
    Thanks in anticipation,
    Corby.
    Tags: None

  • #2
    Re: Inheritance Tax

    Hi Corby,
    Unfortunately this is nothing to do with the estate and Inheritance tax. This is a capital gain since your mother died so Capital Gains tax will fall due.

    As a separate issue, yes you could have utilised any nil rate band allowance that wasn't used by your father if he left everything to your mother but this does not effect the sale value of the property now I'm afraid. It is only relevant at the date your mother passed away.

    This link may help you:- https://www.gov.uk/tax-sell-property/what-you-pay-it-on

    Sorry got carried away with regard to the DWP possible overpayment this will have to be paid from the estate and again can't be used to offset the property value increase. It is a debt of the estate at the date your mother died I am afraid. Yes it should be reflected in the estate accounts and deducted before you start distributing the estate to the beneficiaries, but again can't be used to offset the increase in the house sale price from the valuation provided for probate.

    I hope that clarifies things. Do pop back if you have any further questions.
    I am a qualified solicitor and am happy to try and assist informally, where needed.

    Any posts I make on LegalBeagles are for information and discussion purposes only and shouldn't be seen as legal advice. Any practical advice I give is without liability. I do not represent people on the forum.

    If in doubt you should always seek professional face to face legal advice.

    Comment


    • #3
      Re: Inheritance Tax

      Hi Peridot, thanks for your fast response. I'm going to have to have a proper read of the link you provided. There is more to this issue as I have two family members who are on benefits that live in the house but it's not economically viable for them to continue to do so. My brother really could do with extra support as he's profoundly deaf and quite vulnerable. I'll be back in touch once I get my head around it.
      Thanks again,
      Corby

      Comment

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