Would love to keep our family home, but can’t afford to.

[GLoger]

IHT and stamp duty are fuckers. We would need to work for 2.5 years to earn the upfront tax, assuming no other outlay on anything such as food.

Presumably a home you are inheriting from your parents?

What’s the value of the home and how many people is it split between?

Are there any other assets? You could use a deed of variation to split the estate differently as to how outlined in the will?

Agree stamp duty is an appalling tax.

What does that do please? There are three of us.
Home is a London suburb - decent sized house in average area. Needs work but liveable.

Sorry, no other assets and yes, from parents.

So £1m of the estate is IHT-free? And there must be significant assets above that value to incur such IHT costs.

But It's hard to have to let a family home with emotional attachments go . Sorry for your loss.

You can defer payment of IHT in some instances which might help https://www.gov.uk/guidance/applying-for-a-grant-on-credit-for-inheritance-tax

A bit of re-framing wouldn't go amiss. After an awful loss, you have been left a very valuable property in an area most of us can only dream of living in. Your late parents are being taxed against all the unearned wealth made in a crazy property market.

Try to think of it the other way round: "When this is sold we'll have a giant deposit towards another house, which is more than most people ever get, so we're really lucky".

Taking into account the spend, mortgage interest etc in real terms, tax starts below the cost to break even.

No advice OP but sorry you have to go through this. It really infuriates me!

Sorry for your losses

Stamp duty is not due on gifts or inheritance. Are you buying siblings out of it?

There is no way around the IHT I’m afraid. Although as another posted, you can ask HMRC to pay in 10 yearly instalments (but they will add interest!) - www.gov.uk/paying-inheritance-tax/yearly-instalments

What would you do with the house if you did keep it? Presumably if split between three beneficiaries nobody is going to be moving in to it without buying the others out.

Catch yourself on - you’ve just had an almighty windfall if you’ve inherited an estate that qualifies for IHT.

Why can’t you take out a mortgage on the property, if it has to be sold to pay IHT?

I’m sorry for your loss.

The estate is charged the tax, not you.

The capital gain over time is huge, and has come about because of the huge increase in house prices over the last 50 years.

If that had not happened, there would be no IHT to pay.

So how much money will you inherit when the property is sold and tax paid?

If it's a number with a plus rather than a minute sign and funeral costs you're doing wonderfully.

I'm sorry for your loss of parent but couldn't give a hoot for your loss of property. When my mum died the council gave us a week to clear her belongings from the home we were raised in. That is the reality of many.

This is the problem. The monetary value of the house is only realised if you sell it, but they don't want to sell it. The fact that it's worth a fortune is irrelevant - it's just a number to a family with an attachment to the house and area. The value of the house to the family is in other things. I think it's a shame that there's no way to put a charge on the house, so that as long as it is unsold the IHT is not payable and becomes payable only when sold. Sorry for your loss OP.

You can pay IHT on a house in instalments over 10 years.

What do you want to keep it for? Do any of you want to live in it? If it's not possible for this to happen because none of you can afford to buy the others out, and cover the costs, then it just has to filed with all the other things in life under the category 'things that would be nice if I was richer'.
Very few people who have to share an inheritance with siblings get to keep the family home anyway, so the tax thing is a bit of a red herring.

It probably feels unfair now but not many adults get to keep the family home once their parents die, if nothing else there are usally a number of beneficiaries to pay. Also, to be liable for a lot of IHT the estate you are inheriting must be pretty large.

To get some perspective, when Mr Monkey's dad died we were given two weeks by the council to clear the family home and hand back the keys.

I suspect the same will happen whem my dad eventually dies , but probably less compassion as he has a private landlord

I also had to sell my mums home because I couldn’t afford to by my db out (no IHT to pay).

Your have inherited an asset worth more than £1m. I suggest:

Find a few hundred quid to pay for some extra legal and financial advice. I am unclear why you are paying stamp duty so it’s hard to answer your OP

Could you raise a mortgage to cover the IHT? Do you plan to move into the house, or flip it and sell it?

Presumably would there be stamp duty to pay if one of the beneficiaries decided to buy out the other two whilst still owning another property?

How much is the house worth?

No re-framing needed.

Re: the interest spread out, first instalment interest free within 6months, second instalment increases by 70% to allow for interest on tax.

And can you pay that without bankruptcy? Things cost what they cost and that's the cost of keeping the house

What do you want to keep the house for? To move in to? If so do you have an existing house you can sell to fund tax and buying out the other beneficiaries?