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Originally Posted by garinda
Taking ito account the average price of houses this will affect an awful lot of people, rather more so in Royal Tonbridge Weels than Accrington.  |
A lot of people are likely to get hit without necessarily realising it.
If you have a £300k house with a £150 mortgage on it, you would think that you are ok.
However, if you have a policy in place to repay the mortgage on death (as do a lot of people), you could suddenly find yourself liable. Without going into detail, it could very well happen, as although inter-spouse transfers are exempt from IHT (and if the house is jointly owned then you would be ok then as well if only one dies), the second death will create the liability, as there is no 'debt' now to repay.
There is a way of mitigating this, but you should seek legal advice about this first!
And where exactly is Royal Tonbridge Weels?