Reducing inheritance tax liabiliy.

[GOONERLAND]

here is a scenario that we were discussing amongst friends and on one really knew the answer perhaps legalbeagles do?
jointly owned property . mrs x died in 1997 and mr x lives in the property and is now sole owner . no cash or valuables just a house worth
approx £850.000 possibly less(£750.000) due to dilapidation
1 offspring who is now the named executor in the will and sole beneficiary. when mr x dies
we believe the offspring is entitled to 2 x the threshold which we think is £350.00 so £700.000 threshold.
leaving possibly £100.000 subject to inheritance tax.
can this be avoided??
OR ARE WE TOTALLY WRONG?

[MissFM]

Re: Reducing inheritance tax liabiliy.

Evening Goonerland (is that Arsenal?)

I thought it was 325K and 650K respectively but stand to be corrected.

One way of avoiding inheritance tax is for the estate to be handed over and the person giving it to live for seven years (the tax is reduced on a sliding scale from year one) - but the donor must, from the outset, have no benefit from the gift ie would have to pay a market rent etc..

[GOONERLAND]

Re: Reducing inheritance tax liabiliy.

Thanks ny more on this would be helpful