Another inheritance tax question.

[Wingedharpy]

If an individual inherits money/a share of property from more than 1 source within 7 years:

1. Will they be liable for inheritance tax if the 2 inheritances combined take them above the inheritance tax threshold?
2. If so, will they pay tax on the whole of the 2nd inheritance or, just the amount that takes them above the threshold.

About to update a will and want to work out who to name in order to help rather than hinder!
Thank you.

The threshold relates to the donor not the donee. So the inheritances won’t be combined if both donors die within 7 years. That wouldn’t make any sense.

It’s the estate if each deceased person that pays any tax due. Not the person receiving the money. You can receive a bequest every month and you still won’t pay inheritance tax. The estate of the deceased may have done before you get it.

Therefore how you write a Will makes little difference unless there are huge sums involved. The tax position is given on the government web site.

Thanks all.
Money and law not my thing really, obviously.
Very helpful.

See a lawyer to write your will.