Nile rate band - transfer Q.

simonineaston

Hi, I'm just checking I've understood the rules. The situtation is thus: my mother died in autumn 2015, leaving all her assets to my father, meaning the assets were not subject to inheritance tax, the estate being exempt because it passed to her spouse. My father passed away recently and he has left all his estate to me, his only child.
Does my mother's unused nil rate band transfer to my father, meaning that inheritance tax will be due only on assets over the value of £650,000?

getmore4less

you need to check if there were any non exempt transfers like PETS in the previous 7 years of your mothers death, these can reduce the transferable nil rate band.

simonineaston

The only thing I can think of, that might be relevant is this:
Her dad (my grandad...) set up a trust fund for me and during her life-time, my mother received the income from the sum held in trust.
Would this be involved in the calculation at all?