Proving UK inheritance to UK tax office

[kath2604]

Hoping someone can help me with my situation.

My mother passed away in the UK.(I live in Australia) My siblings in the UK disposed of her house and the proceeds are due to be split between us.
One sibling decided to use the money to buy herself a new house. She now needs to pay me my 3rd.
She does not have the money, so our father has said he will 'gift' her the money to pay me out.
However, he wants to transfer the money direct to me. (she cant have the money in her account as she is on benefits!)

Im concerned that if he transfers direct to me, in the eyes of the UK tax office, it looks like a gift from him to me, and not inheritance from my mothers estate.
If he dies in 7 years, I would be hit with 40% inheritance tax from his estate.

What documentation should I get in place to prove that the money is the inheritance and not a gift?

Thanks in advance for any advice

[jerome.lane]

you would need some sort of document detailing that the gift is from your father to your sister and your sister is just paying you your share of your mothers estate. Your sister will then have the 40% IHT bill assuming your father has a chargeable estate. The most proactive thing to do would be for your father to seek an estate planning review and look at ways of mitigating IHT in the future. This is a service I can provide.