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Caroline Aherne’s Mother Left With Inheritance Tax Bill

Caroline Aherne’s Mother Left with Inheritance Tax Bill

The mother of writer, actress and comedy genius, Caroline Aherne, has endured an Inheritance Tax Bill headache, following her late daughter’s death in 2016 at the age of just 52, following a long battle with cancer.

Recently published probate records of Caroline’s Estate revealed that her grieving mother had to cope with a £71,000 bill because of her tragic loss.

Caroline was a single woman with no children but had made no Will when she passed away, meaning her Estate was inherited by her mother as her next of kin.

The Estate was valued at just over £500,000 and Miss Aherne being single at the time of her death, meant her Estate met the qualifying conditions of a Nil Rate Ban allowance for Inheritance tax, worth £325,000, this meant her mother would inherit the first £325,000 tax-free.

The remaining £175,000 which had been accrued entirely from her earnings, which would have already been subject to Income Tax when originally earned,  was then subject to Inheritance Tax at 40%!

Unfortunately, this Tax Bill had to be settled upfront within six months of Miss Aherne passing away by her mother, who, as the next of kin had the sole responsibility of dealing with the administration of her Estate. A very challenging time when dealing with the grief of losing a loved and cherished daughter.

At the time of Miss Aherne’s death, her mother could have used her daughter’s business’ cash reserves of £76,000 to cover the tax demand. But this would not have been an option if the bank’s procedures were to insist on a Grant of Letters of Administration before they could release cash.

It is so sad to think that with the right Estate Planning, all of this stress could have been avoided. The death of a loved one can have a huge impact, both financially and emotionally, yet less than 50% of UK adults have a Will in place, let alone any real Estate Planning.

Redwood is one of the Souths’ leading Pensions, Investments, Wills, Trusts & Estate Planning providers and we are dedicated to helping families to grow, protect and enjoy their wealth. With our unrivalled knowledge of Estate Planning and Probate, we can advise on any situation. Join us at one of our Free Public Information Seminars: Book online Book Me A Place!Call us on 01489877 547 or Email info@redwoodfinancial.co.uk to book a FREE Initial Meeting with us to review your financial planning needs.

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