Passing inheritance to children

minibus17

I recently read the MSE article on inheritance tax but am left in confusion on 1 minor point. If a woman has children and is divorced and then remarries I am presuming if she then dies the new husband will have no IHT tax to pay if everything is left to him. If he then subsequently dies does the "main residence allowance" still apply if he leaves everything to her children. In other words when the law talks of "children and grandchildren" does this include step children and grandchildren.

getmore4less

https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band#direct-decs

relaxtwotribes

The residence nil rate band for IHT applies to children, including foster, adopted and step.

She needs a new will upon remarrying in which she can leave her assets in trust to her new husband for his lifetime and to her children upon his death.  Spousal exemption means no IHT payable.  This avoids her new husband failing to pass on the assets upon his death.