Understanding probate and tax requirements

[Scottishskifun]

Looking for advice to help my mum out (parents were married). My dad has just died no property in his name (its in my mums) but he had some savings (which were a liquidated pension pot) amounting to £120k. There is no will that anyone can find (my mum has 1 which is 40 years old!)

I've told my mum she needs to do probate given the amount (its all in one account). I know it doesn't need inheritance tax as under the threshold but I can't work out if my mum needs to pay tax on it once we have sorted probate given its over 100k (minus the funeral costs).

I have been going round in circles and going down rabbit holes trying to make sure I help my mum out. I had power of attorney for my dad (had it for both parents) but it's not been activated yet so I have presumed it's still my mum who is the executor.

No, she won't need to pay tax on it. It is an inheritance, not pay.

There will be no tax as they were married. There is a full spousal exemption for IHT. In any case, it appears as though the estate was below the £325k nil rate band.

Had your Dad made any significant gifts in the last 7 years? In the unlikely event that they were over £325k in aggregate and not to his wife, IHT may be due on some of them.

I’m so sorry for your loss. This must be very stressful for you.

just for clarity, you mentioned an old will. Was this your dad’s. If so, that will is likely to be valid.

No not my dad's we can't find a will for him only one we have found is my mums will (I'm assuming because of property) my dad was self employed so property was bought in my mums name for mortgage purposes.

I'm slightly frustrated they didn't do wills more recently given my mums was before any children were born and my dad had been ill for a while but apparently he didn't want to face it.

No big sums to anyone from my dad other than this liquidated savings pot he didn't have much and refused to touch the pot so my mum had something