Unused residence nil rate band

Henrta

If a person passes away 20 years after their husband/wife, and the spouse at the time left everything to their marriage partner, would the sole inheritor of the estate, say their only child, be able to claim a unused residence nil rate band to make the inheritance tax £650,000?

Malthusian

Based on those facts and assuming the sole inheritor was an only child, the total amount free of IHT would be £1 million. (2x nil rate bands of £325k and 2x residential nil rate bands of £175k.)

The RNRB of the first death is still available even though it hadn't been invented when they died.

If the inheritor was a nephew it would be £650,000 (2x £325k only) as the residential nil rate band only applies to direct descendants.

buddy9

Also - for RNRB to be available, the estate needs to include a house (or house sale proceeds), and RNRB will be limited to the value of the house if the house value is less than the maximum RNRB.