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I am an executor for my mother's estate. She lived happily in Scotland with my father who is still alive and also an executor. They shared the same home for more than 50 years until her recent death, both working to support the home. The home is however in my father's name only. They were advised that this would be fine, but then Residents Nil Rate Band was introduced. Her estate will pass to my father, and later we can assume it will be inherited by me and my siblings including the home.
If my mother had had joint ownership of the home, her RNRB allowance would pass to my father and be added to his own RNRB allowance along with the basic inheritance allowance. As things stand this would mean potentially an extra £70,000 saving in tax on the inheritance when we come to deal with my father's estate. Since she did not part own the home it looks like we could miss out on her share of RNRB. If my father had died first we would have enjoyed the full allowance for both.
The question is, can we include half the home in my mother's estate for the confirmation, even though it was not in her name, in order to get her RNRB allowance passed to my father in the future?
We have not yet appointed solicitors as the estate is very simple apart from this point, and we would otherwise be capable of dealing with it ourselves.
If my mother had had joint ownership of the home, her RNRB allowance would pass to my father and be added to his own RNRB allowance along with the basic inheritance allowance. As things stand this would mean potentially an extra £70,000 saving in tax on the inheritance when we come to deal with my father's estate. Since she did not part own the home it looks like we could miss out on her share of RNRB. If my father had died first we would have enjoyed the full allowance for both.
The question is, can we include half the home in my mother's estate for the confirmation, even though it was not in her name, in order to get her RNRB allowance passed to my father in the future?
We have not yet appointed solicitors as the estate is very simple apart from this point, and we would otherwise be capable of dealing with it ourselves.
