Rules of intestacy

[Ayse88]

Under the rules, if their are surviving Spouse and children will the house be left to the spouse so exempt for iht/cgt purposes.

Estate:
50k cash
650k property

Surviving spouse and 2 children ( we are happy for full amount to go to mum but I don't know if that would be allowable)
What would the correct division be?
Thanks

[AGoodman]

Assuming the property was entirely owned by the deceased, the widow will receive £270k + £215k = £485k. The balance passing to the children is £215k, which is beneath the nil rate band.

No IHT to pay assuming the deceased hadn't made any substantial gifts in the last 7 years of his life.

Other than personal possessions, the intestacy rules don't set out which assets pass to which beneficiary so that is one for the administrator (presumably your mother) to decide. If it's not being sold, she could appropriate the property between you so that each beneficiary has a share.

Alternatively, the children could make a deed of variation under which they pass the entire estate to mother - this is read back to death so makes the entire estate exempt and preserves both nil rate bands for later. Another option with the same tax effect is to give her a right to occupy it for life. Speak to a solicitor if you would like to do this.

[maths]

If the house was not owned entirely by the husband but owned, say, 50/50 as joint beneficial tenants by husband and wife then on death the whole of the deceased's interest passes automatically to the surviving spouse.