Inheritance tax on mortgaged property?

[DannyBoyD]

ability to pay the tax bill

Its either a tax bill or a debt.

 

[ClubMan]

take out section 72 insurance

Key Post - Is a Section 72 policy good value?

This was raised in another thread . I have never seen an example of how it works in practice. Let's say I am 65 and am worth €1m which I want to leave to one daughter. I am in good health. I take out insurance for the CAT bill. The CAT bill if I were to die today would be about €220k (€1m...

www.askaboutmoney.com

 

[jpd]

I think what is being suggested is that there is a tax on the value of the estate and not on the inheritances received by the children.

So for example and estate worth € 2m would be taxed at 25% and the balance would be tax-free for the beneficiaries - if only one, hurrah if three then they get € 0.5m each

 

[ClubMan]

I think what is being suggested is that there is a tax on the value of the estate and not on the inheritances received by the children.

That's not what I got from this:

for only children in particular who can only utilise a single allowance against the high value asset as opposed to mulitple sibling allowances.

If there are multiple heirs, they can each utilise their tax allowances, say 300k x 3 against a million pound property, so v little tax payable. As opposed to one allowance, which means the state takes far more.