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Inheritance tax - do we have to pay it in this scenario?

4 replies

DysfunctionalEnd · 16/03/2025 08:04

My mother passed away recently and I will have to apply for probate.

My mother gifted us some money but with the house being left to my father it does not exceed inheritance tax.

However my father also gifted us some money last year, which would take the "estate" about the 325k allowance. So my question is does the gifted from my father count as a gift from my mother given they are still married (separated and living separately for the last 7 months)? Gifts were given from their own personal bank accounts not joint.

OP posts:
cherrytree12345 · 16/03/2025 08:16

How much did your mother gift you and how long ago did she do it
Each person has an allowance they can gift in any tax year, them being married makes no difference as I understand. My DB and I had to pay inheritance tax, my DM died first and the money she left us was ok but DF estate was taxable

SameyMcNameChange · 16/03/2025 08:30

In relation to your mother’s death, your father’s gift to you is not relevant.

Is the situation:

Your mother died, still married to your father, and having made a will.

The will leaves gifts under £325k in total to people excluding her husband. Everything else goes to her husband.

She did not make any gifts prior to death.

In which case the full nil rate band (£325k) is available to set against the non-spousal gifts in her will.

Mindymomo · 16/03/2025 08:30

When I had to do Probate for my Dad, I phoned the Probate helpline, they were excellent, obviously you need all the figures and dates to hand and they will tell you which forms you need filling in.

SameyMcNameChange · 16/03/2025 08:34

On your father’s death, his gift to you may be relevant if it is within 7 years of his death.

But he has his own nil rate band for assets plus gifts in the last 7 years . And given his total estate sounds like it will be under £1m, he also has his ‘residential nil rate band’ if he leaves his house to his children, plus (probably) your mother’s residential nil rate band as well as it is transferable.

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