Inheriting a property can be a bittersweet experience, as the reason that you more than likely inherited the property is due to the loss of a loved one. The process of meeting your obligations as a beneficiary, however, cannot be overlooked.
There is inheritance tax (IHT) implications associated with the handed-down property (possessions, and money) dependent on the value of the estate, and to whom the estate has been left.
You will need to work out the overall estate value as a starting point. The government site has an online inheritance tax checker, which will enable you to assess if you need to pay any tax and the value of the estate. It is worth bearing in mind that any gifts the deceased has given you seven years prior to their passing, will also count towards the overall estate value.
In terms of tax implications, you are not required to pay if you are the spouse or civil partner of the deceased, or if the value is below the IHT threshold of £325,000.
The process of assessing IHT can take several months, and there are only deadlines if there is tax to pay on the estate.
Engage a Solicitor
As receiving an inheritance can be complicated, even more so if there are several beneficiaries; or if the estate is composed of several sources, such as trusts, assets, and money, it would be a good idea to speak to a solicitor, that specializes in IHT. A specialist solicitor can help you with the estate valuation and your obligations as the beneficiary.
Would you like to discuss your mortgage options?
As an independent mortgage broker, we have access to comprehensive mortgage and insurance markets, giving competitive options and prices across both residential and commercial products. Get in touch to see how we can assist.
Attention: Late repayments can cause you serious money problems. For help go to moneyhelper.org.uk