Residential nil rate band transfer

getmore4less

tiengomar said:

naedanger said:

tiengomar said:

naedanger said:

I didn't think you were trying to mislead, it is often better to simplify situations.
Did spouse B ever own the £265k property, and did spouse B ever live in it?

no they have always kept houses in separate names.
yes spouse b lived in spouse A's home and viceversa.

Then I don't think your idea will work. I cannot see how spouse B can claim they ever owned the £265k property. 

so even a dov to the child now to cover the house will not help in the claim for rnrb to add to the nrb transferred to the existing spouse?

You can't transfer downsizing only the RNRB that has not been used

These are 2 separate estates. 

Based on what you have saus so would need clarifying properly. 

A has a property worth £X and downsizing add on to make use of their full RNRB.if assets are passed to qualifying beneficiaries they can use that RNRB on their estate.
If it is not all used what is left can transfer to B. 

B has property(2 depending what happens) no downsizing add on
 if those assets go to qualifying beneficiaries they can use up RNRB upto the value of those properties.

tiengomar

getmore4less said:

tiengomar said:

naedanger said:

tiengomar said:

naedanger said:

I didn't think you were trying to mislead, it is often better to simplify situations.
Did spouse B ever own the £265k property, and did spouse B ever live in it?

no they have always kept houses in separate names.
yes spouse b lived in spouse A's home and viceversa.

Then I don't think your idea will work. I cannot see how spouse B can claim they ever owned the £265k property. 

so even a dov to the child now to cover the house will not help in the claim for rnrb to add to the nrb transferred to the existing spouse?

You can't transfer downsizing only the RNRB that has not been used

These are 2 separate estates. 

Based on what you have saus so would need clarifying properly. 

A has a property worth £X and downsizing add on to make use of their full RNRB.if assets are passed to qualifying beneficiaries they can use that RNRB on their estate.
If it is not all used what is left can transfer to B. 

B has property(2 depending what happens) no downsizing add on
 if those assets go to qualifying beneficiaries they can use up RNRB upto the value of those properties.

thats the plan.
so thats why assets need to pass via dov now to include A house.
the remaining nbr and rnbr can then be transferred to spouse B.

getmore4less

There is no point in having any transferred  RNRB to B,  they don't have any asset that can use it.
A qualifying  beneficiary of A needs to get £175k to use it up.

naedanger

I am not sure if this works or helps:

A dov is done so that spouse A leaves their property plus £85,000 (so £175,000 total) to their children. The RNRB including downsizing allowance is claimed. The remaining £235,000 along with £325,000 (not just £235,000) of NRB goes to spouse B (since spouse A used none of their NRB only their full RNRB).

So spouse B now has £150,000 home plus £635,000 of cash. Spouse B has £150,000 of RNRB (since that is what their house is worth being less than £175,000) plus £650,000 of NRB (including transfer of spouse's NRB). So no IHT due on current tax conditions.

getmore4less

That's what I would start with and run it through the rules and examples. 

If not 100% confident pass it past a suitably qualified professional. 

tiengomar

naedanger said:

I am not sure if this works or helps:

A dov is done so that spouse A leaves their property plus £85,000 (so £175,000 total) to their children. The RNRB including downsizing allowance is claimed. The remaining £235,000 along with £325,000 (not just £235,000) of NRB goes to spouse B (since spouse A used none of their NRB only their full RNRB).

So spouse B now has £150,000 home plus £635,000 of cash. Spouse B has £150,000 of RNRB (since that is what their house is worth being less than £175,000) plus £650,000 of NRB (including transfer of spouse's NRB). So no IHT due on current tax conditions.

that is exactly the plan we have.

thanks