Hi all, first off my Dad is still going strong at the age of 76, so there's the good news!
My Mum and Dad were married for 49 years with my Mum passing away in May 2018. All properties they had were jointly owned, with that changing to my Dad being the sole owner when my Mum passed away. We know we should addressed this years ago even prior to my Mum passing but at least we are addressing it now! Spurred on by me losing my best mate back in May at the age off 44.
Every house and asset is owned outright, there are no mortgages or loans.
Assets (approx):
£750k main residence of my Mum and Dad and remains the main residence of my Dad today
£600k new build house, not yet completed, no one living there and value is as it stand today
£400k Nans house (Mums mum) but owned outright by my Dad with my Nan living there rent free until she passes away or goes to a home etc.
£200 rental flat
£250k holiday home in Littlehampton
£120k cash
£50k cars
£2.37m overall
My Dads will states his whole estate to be split equally between myself and my sister. As I understand it (rightly or wrongly) my mums tax-free allowance of £325k and her £175k main residence passed to my Dad when she died. So does this mean he has the same and therefore the first £1m of his estate would not be subject to IHT? IF yes then we are looking at a bill of £548k based on the remaining estate of £1.37m.
Soon we will be looking to get professional advise on how exactly we can avoid as much inheritance tax as possible whilst still giving my Dad the peace of mind that if all properties were transferred to equal ownership between him, my sister and myself he would never be in danger of being kicked out and would be protected by law.
Thanks everyone, any help is greatly appreciated!
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