Inheritance tax question

[Nitgel]

My mil had some savings and they were used to pay for her care for the past few years. She was running out of funds so had to sell her home so she would have funds to continue this care. She has recently died and am I correct in thinking that all the assets from selling her home would now be subject to inheritance tax? I am guessing so, the house sold for over £325 the threshold.

It doesnt matter what the house sold for if it sold before her death. It only matters if what money was left when she died is 325 k or more

It's the value of the Estate that is relevant to IH.

Assets at time of death are included. If the funds from the house are all spent, there is no IT to pay.

IHT has a £150k additional house/property part over and above the £325k and so if the house was sold before the death then any money over £325k would be liable for tax and you wouldn't be able not use the £150 property part

you pay tax on the figure above £325k

But was MIL a widow? as you can also claim £325k from a previous spouse therefore if your spouse lost their father say 15 year ago and the father didn't leave anything in his will to your husband then your husband can also claim that £325k allowance - so a total of £650

Under certain circumstances there may still be an entitlement to the additional residential nil rate band of £175,000 for her. There might also be nil rate allowances available if she jointly owned the property with the father.

oh that's interesting, yes my FIL died nearly 30 years ago and left everything to mil so the 325 can be taken into account for him too, it seems so confusing

yes the £325 can be used from your FIL, you will need the numbers from his probate or administration (if he died without a will) to use on the probate forms

the executors will do the probate, they will collect all the banks accounts and add up any cash there, no property to be valued, then any other stocks shares etc and if you phone the probate office they will advice you on which online forms to fill in and are ver helpful.

you can fill the forms in online and pay the sum - around. £220 for probate, then send in the original will - not a copy - and you get probate

if the estate is worth more than £650 you'll have tax to pay at 40% on any amount over £650

probatesearch.service.gov.uk/#calendar check here for the numbers on FIL probate

www.gov.uk/applying-for-probate/apply-for-probate

executor can do probate once they have all the information collated

www.gov.uk/government/organisations/hm-revenue-customs/contact/probate-general-enquiries phone number to ask which forms to fill in etc