joint assets automatically pass to surviving spouse

[hungryfor knowledge]

case study

I know that surviving spouse automatically gets all the jointly owned assets,( joint tenant), not liable to pay Inheritance tax.
what happens if the gross value of assets exceeds one million including the deceased spouse own assets .
Deseaced own asset £300k,share of deceased joint asset passing automatically because of joint tenancy £750k.total 1050k
Is there any Inheritance tax due , if so how much

[pawncob]

If all assets go to wife no IHT due.

[hungryfor knowledge]

Thank you for answer. In my case study, surviving spouse is husband.
What is gross value of £ 1 million limit including share of joint asset of the deceased ?
I got confused with deceased share of joint assets passing automatically to the surviving spouse, i.e. husband.

I would be grateful if any inheritance expert can help me distinguish between the two, i.e. share of joint and share joint assts passing automatically to the surviving spouse.

I will appreciate it
Thanks

[AGoodman]

I don't understand your question I'm afraid.

There is no limit on the spouse exemption so no IHT at all on £1m or £10m.

Spouse exemption applies whether the assets pass under the estate or are joint assets.

The only £1m limit I can think of is that a married couple's nil rate bands (2x NRB plus 2 x residential nil rate band) add up to £1m. This would mean assets over £1m on the second death (husband) would be subject to IHT unless you could find some other relief such as BPR/APR. Residential nil rate bands only apply if the couple have a property worth at least £350,000 which is left to their descendants.

[hungryfor knowledge]

Thank you very much for helpful answer.
as you didn't understand my question, I will try to explain it more so that it is clear to all forum members.
Husband is alive,with two children, wife passed away without any Will.

Wife 's asset in her sole name £345000. Husband gets £25000 plus 50% of the balance£95000 , total inheritance £250000+£47500=£297000 that below £325000 ,
No I H T to pay.
Wife share of joint assets (joint tenancy that automatically passed to husband ) £1,250,000 less share of wife' s loan £390000 =££860000.
Land registry already transferred to husband`s name after seeing wife`s Death certificate.

Is there any inheritance tax to pay by husband.?

[pawncob]

Your figures don't make sense.
https://www.gov.uk/inherits-someone-dies-without-will/y/england-and-wales/yes/yes/yes

[someone]

I think you have it backwards.

There is no inheritance tax on the assets that pass from wife to husband regardless of whether that's via a will, via intestacy law, or due to joint ownership.

The part of the wife's estate that did not pass to the husband is in scope for IHT.

But I think, from your numbers, you're saying that that was 48K, so no IHT to pay (but when husband dies, 48K of the wife's allowance will already have been used up.

[hungryfor knowledge]

Hello , thanks for your comments.
have looked at HMRC Notes to fill in form IHT 205(2011). in the paragraph of age 6 of the note it says

ASSETS PASSING TO A SPOUSE OR CIVIL PARTNER OR TO A QUALIFYING CHARITY

Why it matters whether the estate passes to the spouse or civil partner or to a qualifying charity
Broadly , assets that pass to the deceased's spouse,civil partner,or to a qualifying charity are exempt from Inheritance Tax. So, if most of the asepsis to the deceased's spouse or civil partner or a qualifying charity, it is likely that here will be no tax to pay. If there is no tax to pay because of thee exemptions, and the estate meets the other conditions that apply, mainly that gross value is £1 million
or less , you will not have to fill IHT 400. But there are some restrictions to these exemption.

ALSO in IHT 205 form, ( Assets added to the estate for Inheritance Tax for which a grant of representation is not required.

Box NO 9.2
Deceased's share of joint assets passing automatically to the surviving joint owner even if they are husband and wife or civil partner.

If joint assets automatically passes to the surviving spouse even if it exceeds one or ten million,and no IHT is due on this transfer, why I HT form 205 is asking for Deceased's share of joint asset?
Does this joint asset transfer form part of the Deceased 's estate for which IHT is payable if gross value including Deceased"s own assets exceeds £1 million?

I would be grateful if learned Tax experts in the panel can clarify why IHT 205 is asking to include Deceased's share of joint assets and is there any IHT liability on the surviving spouse on these automatic transfer?

[bd6759]

HMRC will want you to show what assets have gone to the survivor in order that they may check the return.

[Lee Young]

Both the IHT205 and th IHT400 ask about jointly held assets The £1million figure merely determines which of the two tax returns you have to complete.