sibilla
Apprentice
Joined: 05 Aug 2005
Posts: 5
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 Posted: 10/29/07 - 07:04 Post subject: |
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| Hello there. After my father’s death, my mother lives alone in our family house. Now she wants to give the house to me. In other words, she wants me to inherit her house and she’s like to take care of it now, before she dies. We heard that inheritance tax is not insignificant. Is there a way for my mother to transfer the house to me without having to pay for that tax? What will happen if she gives me her property as a gift? |
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elane
Apprentice
Joined: 29 Jul 2006
Posts: 15
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| Posted: 11/28/07 - 01:31 Post subject: |
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| Hello. Well, there are some cases in which a person is allowed to transfer his or her property to other people, as an inheritance, without being liable for inheritance tax. Giving property to your husband or wife, or civil partner is exempt from inheritance tax. In cases of wedding gifts inheritance tax doesn’t have to b paid but only for a small amount of money. Now, parents can make gifts to their children up to 3 000 pound annually without having to pay inheritance tax. But, I’m afraid it won’t be of any help to you. There is also a thing called “potentially exempt transfer” or PET. PET in this case would be free from inheritance tax only if your mother lives seven years after she transfers the property to you. If she makes a will, you can inherit property without being liable for inheritance tax if the property’s worth is less than 300 000 pounds. Consider that as an option. I think it would be the best for you to see a solicitor. That way you can figure out what to do. Take care. |
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