inheritance tax

[joe1]

my 6 sublings and I have just inherited approx �700,000. Will we have to pay inhertance tax on 40% over the tax free amount ie. about �450,000 or will we be assessed for tax on �100,000 each ( ie. 1/7th of the full amount). Thanks

[Didwot]

The estate (or rather the executors on behalf of the estate) will pay the tax. The calculation is based on the net value of the estate, less the tax free allowance, so on the figures you put forward there will be a tax bill of about 170,000 leaving you with about 75,000 each.

[joe1]

Many thanks for your rapid reply. Myself and my brother are executors of our parent's estate. Assume therefore that the 'estate' will pay the tax and then myself and my siblings will get what's left. Once again thank you.

[joe1]

Don't know mdoo - but I sincerely hope that you are wrong!! Anyone?

[spudqueen]

My Mum died last year and my brother and I are joint executors and also the only beneficiaries of the will. It is witnesses to the will who cannot be beneficiaries. You have to pay inheritance tax on the amount over the tax free amount, not on the whole estate, but I would recommend you go to a solicitor, they deal with this sort of thing every day and really know what they are doing.

[joe1]

Thanks everyone - much obliged.