Tax implications from a property inheritance

[Headteacher]

Four siblings inherit their mother's property. One has been living there for some years (call them A). The property is worth £600,000. Siblings B, C and D decide to create Deed of Variation and hand over their part of the inheritance to A. Will A be liable for the entire inheritance tax? Thank you.

[pawncob]

Any IHT above £500k (£325k+£175k) will be due from the estate. Depending on the wording of the DoV and other assets bequeathed, this may fall on the beneficiary.

[AGoodman]

As pawncob says, any inheritance tax will be payable by the estate, not the beneficiaries.

However, if the property is the only asset of the estate, and A wants to keep the property rather than it be sold to pay the tax, A will have to provide the cash to pay the tax.