IHT on Half a House

Oswulf

Half of my house is held by a trust created on the death of my wife. The other half I am leaving to my children.

Will I get the £100,000 inheritance tax residence nil-rate band? Half of it? Or nothing at all?

Keep_pedalling

You have your own £100,000 primary residence nil rate band. I believe setting up the trust will only effect the amount of your wife’s standard nil rate that can be passed on, and that her primary residence nil rate can still be transferred in full.

getmore4less

What sort of trust.

If life interest(probably a IPDI trust) then you need to review how they work for IHT and the use of nil rate bands.