Who pays IHT in these circumstances?

[Nimbus1999]

No will, daughters are executors.

Property owned jointly with partner (not married / civil partners). Upon death, transferred 100% to partner (not tenants in common).

50% of property (now owned by partner) plus savings exceeds the nil band of £325,000.

Partner keeps the house. Daughters keep the savings.

Who pays the IHT bill?

Thank you for this.

Anyone? In practical terms, how do you get HMRC to assess the property owner? As far as I can see, you can only submit one IHT return.

I’ve just been reading that legislation - I’m not 100% convinced it refers to jointly owned assets. It seems to be referring to “chargeable transfers” which surely result from PET within the 7 years?

PET is potentially a chargeable lifetime transfer. Transfers that happen on death are chargeable transfers.

I know what PET is.

The legislation quoted looks like it is referring to chargeable transfers, nothing to do with our situation?

Is a transfer to a joint owner on death a “chargeable transfer”? I guess that is the question! If so, I guess the legislation does apply.

Talk to a solicitor? Try Citizens advice if you don't want to pay.

I can’t afford a solicitor unfortunately. But will give citizens advice a go, thank you.

Wish these things were easier to understand! Seems so ambiguous!

Death is a chargeable transfer!

That’s how IHT works but the PRs have a right of recovery of the IHT from the joint owner.

HMRC will assess a joint owner see here https://trustsdiscussionforum.co.uk/t/payment-of-iht-for-property-held-as-joint-tenants/15398/4 (but don’t ask questions on that board it’s purely for professionals)
how much IHT we talking about?

£30,000 IHT.

s.200 (1)(c)

This legislation also seems to imply the property owner is liable. She lived in property before death and continues to live in property.

I’ve seen that forum says “HMRC will assess the joint owner” but HMRC didn’t seem to know anything about this? As far as they were concerned, one return and whoever signs it is liable (in the case, the daughters as personal representatives).

So a “right of recovery” means Court right? If she doesn’t want to pay?

On the estate in total or attributable to the property?

It’s about 50/50 so £15k each

So property £200k, balance to daughters £200k?

Because if so there is £200k available to the PRs to take legal advice.

Read my post properly. A transfer on death is a chargeable transfer.

We didn’t want to spend the estate funds unnecessarily. It’s complicated but one of us needs a certain fixed amount and there is only just enough now without extra legal fees.

We would never take the partner to court to reclaim the £. So looks like we might just have to suck it up if she refuses to pay anything towards the bill.

And this is why anyone with a question re IHT, wills, intestacy etc should contact an expert/solicitor. Ask the question on MN and you'll get 14 different answers.

325k in savings and you can't afford a solicitor??? Asking on here is ridiculous because nobody will know all of the facts.