After a trip to the UK, I'm starting to think about some of my old relatives dying. I have an aunt in her 90s and my mother is 80.

Just started looking into inheritance tax and believe it is an unbelievable 40%, is this correct or am I missing something. 

My mother put her home into my name, along with sibling, 4 years ago. Not sure if this will prevent inheritance tax or not. 

 

My question is if there is anything else I should be doing to avoid paying tax in the UK. I am a Thai citizen, would this avoid paying the tax? If so, maybe the properties should all be put in my name now ????

Am following the topic with interest but don’t have much to add except believe if your mother “Gifted” you & your siblings the property then 7 years needs to have passed before it wouldn’t be liable for Inheritance Tax. 

https://www.gov.uk/inheritance-tax/passing-on-home

Do note that if your mother continues to live at the property then she should be paying rent at the prevailing rate…

 

Giving away a home before you die

There’s normally no Inheritance Tax to pay if you move out and live for another 7 years.

If you want to continue living in your property after giving it away, you’ll need to:

• pay rent to the new owner at the going rate (for similar local rental properties)
• pay your share of the bills
• live there for at least 7 years

Otherwise it counts as a ‘gift with reservation’ and will be added to the value of your estate when you die. (A gift with reservation is where you give something away but continue to benefit from it.)

You do not have to pay rent to the new owners if both the following apply:

• you only give away part of your property
• the new owners also live at the property

If you die within 7 years

If you die within 7 years of giving away all or part of your property, your home will be treated as a gift and the 7 year rule applies.

 

if the House was still in your Mum's name and she was living in it when she dies she would would have had an inheritance tax free allowance of £500,000 or £ 1 million depending on  the date that your father died assuming that he passed his entire estate including his £325,000 inheritance tax free allowance directly over to your mother

£325,000 inheritance tax free allowance plus £175,000 residence nil-rate band

Unfortunely as she has put the house in your name and your siblings names she no longer qualifies for the extra £175,000  residence nil-rate band

Her current inheritance tax free allowance is £325,000

https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band

31 minutes ago, vinny41 said:

if the House was still in your Mum's name and she was living in it when she dies she would would have had an inheritance tax free allowance of £500,000 or £ 1 million depending on  the date that your father died assuming that he passed his entire estate including his £325,000 inheritance tax free allowance directly over to your mother

£325,000 inheritance tax free allowance plus £175,000 residence nil-rate band

Unfortunely as she has put the house in your name and your siblings names she no longer qualifies for the extra £175,000  residence nil-rate band

Her current inheritance tax free allowance is £325,000

https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band

The above is based on figures today there have been some rumblings that the next UK Goverment might reduce the current levels of inheritance tax free allowances

You might find this link useful (although much of it repeats what Mike and Vinny say).

 

https://www.moneysavingexpert.com/family/inheritance-tax-planning-iht/

 

As an aside. If you do not already have a Power of Attorney for your relatives I would seriously consider getting one as it makes things so much easier if, unfortunately, they become unable to manage their own affairs.

 

 

 

 @vinny41

What @RayC said about Power of Attorney is correct

The 2 types of LPA

There are 2 types of LPA: property and financial affairs, and health and welfare.

Can be started here

https://www.lastingpowerofattorney.service.gov.uk/home

Banks and solictors offer this service but at a huge markup

The forms can be completed by anyone just read the help sheet very careful and once you have the documents they should be treated in the same manner as your house deeds the office of public guardian ( they register and issue the documents) don't provide additional copies if you lose them

 

There is also the potential that signing her home over to you is seen as "deliberate deprivation of assets" and could affect her rights to care when still alive.