Enhanced IHT allowance for property - rules?

ratechaser

Hi all,

For the £500k enhanced IHT allowance (i.e. £325k standard allowance and £175k additional for a main property), a couple of questions:

1) Does property ownership physically have to transfer to the children/grandchildren for this additional IHT allowance to apply, or can it be sold by the executors and the proceeds be distributed directly to the beneficiaries?

2) if there are multiple beneficiaries, and any one of them is not a close relative, does that completely remove the ability to use the enhanced allowance on the estate, or is there some sort of prorating of the allowance based on the percentage distribution to close relatives versus others?

(this is not directly connected to the other thread I've started, hence why I've kept it separate)

thanks
RC

tacpot12

1) Ownership of the property does not have to pass to the children for the estate to eligible for the RNRB, the property can be sold and the proceeds distributed to the beneficiaries. 
2) You can still use the RNRB if some of the property is not left to a close relative. Have a look at the IHT435 form that is used to claim the RNRB.