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If a person leaves no will and their next of kin is the spouse and receives a payment of £600k, would this be liable for inheritance tax because there was no will?

26 May 2022

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Question by Jason

If a person leaves no will and their next of kin is the spouse, if they receive a payment of £600k would this be liable for inheritance tax because there was no will?


Answered by Oliver McDonald

Hi Jason,

Thank you for your question.

Normally, spouse-to-spouse transfers are exempt from Inheritance Tax. A person can leave their estate to the spouse inheritance tax-free. They can also pass over their unused allowance of £325,000.

https://www.moneyhelper.org.uk/en/family-and-care/death-and-bereavement/gifts-and-exemptions-from-inheritance-tax


This guide to Inheritance Tax on the MoneyHelper website will help:

https://www.moneyhelper.org.uk/en/family-and-care/death-and-bereavement/a-guide-to-inheritance-tax#:~:text=Back%20to%20top-,Inheritance%20Tax%20gifts%2C%20reliefs%20and%20exemptions,as%20farms%20and%20business%20assets.

I hope that helps for now.

Oliver

Answered by

Oliver McDonald

Director & Independent Financial Adviser

I have worked in financial services for 15 years gaining extensive experience in financial planning. I am a people person. You will rarely find me explaining complex spreadsheets or using jargon. I keep my conversations at a high level and realised early on that financial planning is all about helping my clients achieve the lifestyle they want in future. I work with individuals, business owners and entrepreneurs. I specialise in retirement planning, investments and business protection.