Am I liable for inheritance tax on fathers savings?

bonds should be cashed in immediately after death of the owner as they become invalid, any prizes sent after his death should be returned.

Inheritance tax will depend on the entire value of the estate, surviving spouse etc. etc. and yes it may still be due.

Mrcheerful

Not unless you inherited a whole lot more besides - e.g. house etc. You need to add up the value of everything you inherited at the time your father died, then subtract the inheritance tax allowance for the 2004 tax year (not sure what that was but in the mid to high two hundred thousands). In principle, anything left after that would be subject to 40% tax.

What did you estimate the total value of your inheritance was?

-Neil F.

I'm assuming here that you were the sole benefactor. Inheritance tax is payable on the total value of an estate and, if due, should be paid before any benefactors receive their share.

-Neil F.

In message , neil f writes

Dont forget to check for any gifts the father made in the 7 years before death, and go back 14 years for the creation of any trusts.

I believe you have a year after death before you have to sell.

Replies so far have assumed that the father has died. Perhaps whatt the OP means is that father has given him gifts over the years and he wonders if, when father dies, he migth have to pay some inheritance tax.

The answer to that is almost certainly not.

Even if there is tax to pay, it is due when he dies and there is no 'back interest' to the time of the gift. in addition, it is not normally paid by the recipient of the gift but rather it is paid out of the money he has when he dies - his 'estate'. Only if he has given away more than about £280,000 and there is not enough money in his estate to pay the tax do people start coming back to the recipients of the gifts asking for the tax.

Robert

Thanks to you all for taking the time to reply.

I was the sole benefactor.

My father didn't own any real estate - lived in a council flat all his hard working life.

When he died - he had just over 22k in savings. Approx 4.5k in a savings account and the rest in premium bonds.

The savings account was closed and the money transferred to me. All the bonds in his name were cashed in and then I bought new ones.

My understanding now is that unless his "estate" was over approx 240k then I would not be liable for inheritance tax.

Am I obliged to declare the monies received to the tax office?

Thanks again

Michael

Which part of "My father died in 2004" did you find ambiguous?

Beneficiary. Benefactor is who giveth. Beneficiary is who receiveth.

That's all right then.

Correct.

No.