Inheritance tax on a will?

[Bobbyboy]

My wife and I have all our savings plus the house held in joint names and totals approx £500,000.
When either of us dies all goes to the survivour.
When the survivour dies all is divided between our 2 sons and the five grand children.
At any stage would there be any Inheritance tax to pay?

Thanks for any replies.

[Mrchan66]

Hi, from my understanding no inheritance tax would be payable on either yours or your wife's death.

On the first death where everything passes to a spouse there is no tax liability. On the second death the estate will also benefit from their spouse's unused nil rate band. The nil rate band is up to £325,000 so assuming your combined estate is not above £650,000 then there should be no Inheritance tax liability.

After that there is also a residence nil rate band which can increase your nil rate band up to 1 million (where the property passes to your children or grandchildren).

Hope this helps

[Bobbyboy]

Hi, from my understanding no inheritance tax would be payable on either yours or your wife's death.

On the first death where everything passes to a spouse there is no tax liability. On the second death the estate will also benefit from their spouse's unused nil rate band. The nil rate band is up to £325,000 so assuming your combined estate is not above £650,000 then there should be no Inheritance tax liability.

After that there is also a residence nil rate band which can increase your nil rate band up to 1 million (where the property passes to your children or grandchildren).

Hope this helps

Thank you for you post, very helpful answers my question in full.