Do I have to pay inheritance tax on my parents' house?

For most people, the biggest financial asset in an estate will be the family home, but thanks to new rules introduced in 2017, you could have less or even no Inheritance Tax to pay when inheriting your parents; house.

In this video, I explain everything you need to know about inheritance tax, including the tax bands, the nil-rate band and the residence nil-rate band.

00:00 Do I have to pay inheritance tax on my parents' house?
00:34 What is the nil-rate band for inheritance tax in the uk?
00:50 What is the inheritance tax rate above the nil-rate band in the UK?
01:17 When must executors pay the inheritance tax due?
01:39 What is the residence nil-rate band in the UK?
02:25 Do children have to pay inheritance tax on their parents' house?
03:20 The residence nil-rate band for estates worth of £2 million
04:00 How to pass on your home before you die for inheritance tax purposes

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[reducepricroryhrywtby]

We just under the limit but dad spent some before dying to reduce this for my brother and we sell next year
Trying to declutter ourselves to save money
If have to sell your deceased parents home have a timeline as prices rising
Probate rising, conveyancing rising, funeral bills rising etc house clearance average 600 to 900 to clear parents house, depends on rooms, area, how many rooms, loft
Cleared garage only 160 ? That was cheapest
When people die massive phone bill as have to ring and talk
Travel costs hotels, meetings to choose solicitors
Take on parents pets decent thing to do
Vet bills
Still pay if deceased parents house or not unoccupied as high risk if empty house Insurance mains
Home care, carer cheaper, try and avoid care homes if can ( convert home, carer average care fees 1200 a week)
Or help elderly if can I did this and went job but very hard indeed
Some don't sort out house for 3 to 6 years ( trauma, can't agree etc )
If some houses shoots up in price they will pay more, so imagine it in 40 years time?? Bear this in mind
Love plays a part

[AmbiNerd]

Hello,

Hope you can answer this question. What if the estate is over the nil rate band (£325, 000) but i am entitled to the Residence nil rate band which is an additional £175, 000 (making a total of £500, 000 threshold) ?

Does that make the estate an excepted estate and not require IHT400 to be done? Or does just the 325, 000 only apply?

[shelleycharlesworth]

My mortgage free house is in my trust. If I leave it to a friend, what about the property taxes? Will the taxes be increased?

[mamad]

I need some help and at a loss. I would like to leave half my assets to my ESTRANGED grand daughter however I only know her 1st name. I don’t know how I’m able to do this without her name. Can you assist please? Very sad 😔

[pareshparmar]

Great video. Am I understanding this correctly, that both parents have 500K in tax (Inheriance) free allowance. If one parent dies, their 500K gets passed onto the spouse making this 1 million exempt from Inheritance tax? If this is not correct please let me know. Thank you.

[melgrant]

What if you are already living in the house you will inherit and want to stay living in it.

[ilikecookies]

I'm single and so if i die, my £510k house and after mortage its £360k..if my parents or siblings get it, do they pay any tax? Their currently living in this house

[mrmarkd]

Do you pay IT if you don't sell property

[shahidaziz]

how can i avoid inheritances tax on assets of £2 million

[roncouch]

Gifts? What sort of “gifts” would be considered to be taxable? And, if I elect to gift my, very ordinary, bicycle to my 14 year-old grandson, would his parents have to pay tax on it?