what is the inheritance tax amount for a widower?

Helenandmark

My mum died in May 2020, leaving a will. Her half of their house was left in trust to myself and my brother. Mum left about £50k in savings which has now been put in my Dads name and bank account. The full value of the house is about £240k and Dad has a further £50k in savings. Does Dad now have £650k inheritance tax plus £175k for the property? or just £325k plus £175k property allowance. If he sells the house and rents will this then reduce to £325k allowance. He is wanting to gift some money and we need to know the allowances first to get a better understanding of any tax we may be liable for in the future. Thanks in advance

Keep_pedalling

The RNRB is not lost if you sell to rent more suitable accommodation, so unless he comes into a large windfall IHT is never going to be an issue for his estate.

Brynsam

Helenandmark said:

My mum died in May 2020, leaving a will. Her half of their house was left in trust to myself and my brother. Mum left about £50k in savings which has now been put in my Dads name and bank account. The full value of the house is about £240k and Dad has a further £50k in savings. Does Dad now have £650k inheritance tax plus £175k for the property? or just £325k plus £175k property allowance. If he sells the house and rents will this then reduce to £325k allowance. He is wanting to gift some money and we need to know the allowances first to get a better understanding of any tax we may be liable for in the future. Thanks in advance

Rather depends on how much he wants to gift and whether he is intending to do so out of his capital or out of surplus income.

getmore4less

any tax we may be liable for in the future.

the recipients of gifts don't pay any tax(unless very big there may be some future IHT liability).

For the future estate gifts are mostly IHT neutral anyway, worst case its the same tax as not gifting.

what sort of trust was used for the share of the house.

xylophone

what is the inheritance tax amount for a widower?

  It is possible that the executors of a widower would be able to claim his Nil Rate Band, his Residence Nil Rate Band and transferable NRB and RNRB from a deceased spouse depending on the precise circumstances.

https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold

Your mother's will created  an Immediate Interest in Possession Trust in your father's favour?

See https://techzone.adviserzone.com/anon/public/iht-est-plan/Tech-guide-iht-on-death

Where an IPDI trust has been set up and the surviving spouse has the interest-in-possession, the residential nil rate band of the deceased spouse will be brought forward and will be available to the estate of the life tenant as long as the property is then left to the life tenant’s direct descendants.