IHT allowance

lexington013

My father passed away recently and left everything in his will to my mum.
Her IHT allowance moved to £650,000 before any tax was due which put her under the limit (cash and house left approximately £580,000).
Mum has completed her will and named me as the sole beneficiary.
Is her allowance when she dies £425,000 or does she retain my dads unused allowance £325000 plus £425000 for leaving a house to a child (£750,000) in total.
I'm not clear on the overs view given on the government website.

Keep_pedalling

No, currently she has her own nil rate band plus her husband's, so £650k in total plus both her and your father's allowance for their primary residence, which is currently £100k each, so if her house is worth at least £200k then all four elements provide a tax free amount of £850k

getmore4less

lexington013 wrote: »

My father passed away recently and left everything in his will to my mum.
Her IHT allowance moved to £650,000

that only happens if your father made no gifts in the last 7 years that were not exempt using other allowances.