IHT on gifts within 7 year period

buddy9

pensioner_999 said:

getmore4less said:

Only one property can be used for the RNRB

Thinking forward to my time, Why do you say only 1 property RNRB can be used ?

Not quite what was said. getmore4less advised that RNRB can only be used for one property.

 And in this case there were two properties mentioned.

Keep_pedalling

pensioner_999 said:

getmore4less said:

Only one property can be used for the RNRB

if the total estate with the gifts added back is under £650k(2*£325k) that is probably the easy route.

no need to mess about with the RNRB.

Accepted that we don't need  2 x RNRB for Mums case

Thinking forward to my time, Why do you say only 1 property RNRB can be used ?

The 'general' number for IHT limit which gets bandied about is approx. 1 million

The only way to make that number for a normal couple  is 2 x 325k   +  2 x 175k

To make the £1M the family home therefore has to be worth £350k or more, second properties don’t count but you are allowed to downsize or sell and move in with family, sheltered housing or a care home and still claim it.

If inheriting from mum causes your own estate to have an increased IHT liability one of the best options to reduce this is to make a deed of variation to pass some or all of the inheritance to the next generation. This avoids it ever entering your estate so no 7 year rule to worry about. This has to be done within 2 years of her death.

pensioner_999

"and still claim IT ."  
Sorry, so is that  x1  or x2  RNRB ?

Mum and Dad had a joint house -  passed to mum on dads death, and later sold - 450k ish
She then bought a sheltered flat for about 210k  - that value is included in the original 530k estate value in 1st post

A pretty common state of affairs I would think, and just as likely to apply to myself too

RAS

So they only had one house/main residence at a time? In which case they can claim RNRB twice.

Keep_pedalling

pensioner_999 said:

"and still claim IT ."  
Sorry, so is that  x1  or x2  RNRB ?

Mum and Dad had a joint house -  passed to mum on dads death, and later sold - 450k ish
She then bought a sheltered flat for about 210k  - that value is included in the original 530k estate value in 1st post

A pretty common state of affairs I would think, and just as likely to apply to myself too

With an estate of £530k the transferable RNRB will not be required, but if it was it could be, because although her last last home value was below £350k the downsizing rule applies from the previous home.