Inheritance tax - the main residence nil-rate band

neilmorgan

I've seen various articles on this topic all with slightly different wordings.
They mainly state "if you're leaving your home to a direct descendant" and all state £175K per spouse for this year 

1) What happens if you leave it to ALL your children in your will rather than one individual child?
2) What happens without a will because although they will inherit it you haven't "left it" to them.
3) Do the inheritors have to live there for a period of time or can they just sell it and still get the tax allowance?

Mojisola

neilmorgan said:

1) What happens if you leave it to ALL your children in your will rather than one individual child?
2) What happens without a will because although they will inherit it you haven't "left it" to them.
3) Do the inheritors have to live there for a period of time or can they just sell it and still get the tax allowance?

1) They are all direct descendants so the £175k applies.

2) The property will be left to them through the intestacy rules and the £175k applies.

3) No, they don't need to live in the property.

Keep_pedalling

2) As long as the bulk of your estate is going to your direct descendants the RDNR can be claimed (assuming your estate is big enough that it would make it necessary). It can even br claimed if you have sold the house to move into care or sheltered housing.

It is actually a very bad idea to leave specific property in a will as it can have unforeseen circumstances if you no longer own it at the third of your death. 

It is also a very bad idea to die intestate so if you don’t have a will prioritise getting them.