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If the rules are the same in Scotland as England then...
A potential issue i can see is that if the value of the two places exceeds the IHT threshold, could we have to pay the tax with her husband still in residence (if he is the surviving partner), as we wouldn't have any obvious way of doing this without selling one of the places?
Generally you can transfer any amount to your spouse and there is no IHT due. That might be different if the flat is owned by a business which your mum is the owner of, you would need a specialist advisor to be sure.
I'm not clear where the £570k number comes from.
Does seem odd. Ask the solicitor?
jellybaby
@ChasnotRobert
Anyone know anything about inheritance tax?
scenario is this: my mother has a house (in scotland) where she lives and a flat which she rents out, the income from which is the majority of what she and her her husband (my step father) live on.
In essence, my mum wants the property assets to go to her children when she dies, but if her husband outlives her, naturally she wants him to have life rent in their house and also the income from the flat as he won't be able to afford to live without this.
A potential issue i can see is that if the value of the two places exceeds the IHT threshold, could we have to pay the tax with her husband still in residence (if he is the surviving partner), as we wouldn't have any obvious way of doing this without selling one of the places?
my mum's Scottish solicitor says that the value of the house where they live "is covered by other allowances", so we don't have to worry about this part. He also says that we would only need to pay IHT if the value of the flat (from which they get their income) at the time exceeded £570k, which is unlikely. I'm not clear where the £570k number comes from.
So overall I could just sign the thing (we are executors of the will) and not worry about things that may not happen, but it would be nice to be a little bit reassured.
I guess seeing as inheritance is immoral so I should just ask her to leave it all to the cats and dogs home in any case...