Bequesting money now IHT?

funkylady

My parents are planning on giving myself and my husband £100,000

They both have wills and within them they are bequething up to the nil rate band. It also has a clause which includes transfers made within the seven years prior to death.

Could you please confirm and I am right in thinking that because of that clause if the parent who bequethed us the money dies before 7 years that £100,000 would be deducted from the nil rate band at death and you arrive at the sum to be tranferred as £200,000 with no IHT to pay?

The other surviving parent on his/her death would be able to leave up to the nil band rate also (£300,000)

CLAPTON

without seeing the wills its impossible to say but assuming correctly worded then the effect on the first death seems OK.
also i am assuming there is sufficient money available to each of your parents for this to happen.

however, i dont really understand about the second death, i would have assumed that all the estate would be given to you, of which the first 300,000 is tax free.