IHT - RNRB Query?

Mothman

Recent poor health has meant my elderly mother has had to go into care home and she is asking my brother & I what she should to do with her house. She was widowed approx 20yrs ago and her current assets mean her estate will be be slighly over the IHT threshold when taking into account her NRB plus our late fathers NRB and their two RNRB's.

Is it the case that were she to sell her home whilst alive then she would lose the benefit of both RNRB's and her estate would be liable to additional IHT of £140k (£350k x 40%) or did she effectively lose both RNRB's as soons as she became resident in the care home. She has sufficient liquid assets to pay her care home fees for approx 4-5yrs and so there is no pressure for her to sell her property right now if it were detrimental to tax.

p00hsticks

Have you looked through this ?

https://www.gov.uk/guidance/how-downsizing-selling-or-gifting-a-home-affects-the-additional-inheritance-tax-threshold

Mothman

Thanks for the link. Having read that, my understanding would be that as the home is worth approx £500k there would be no loss of RNRB were she to sell whilst alive as my brother & myself are the sole beneficaries.

Keep_pedalling

Mothman said:

Thanks for the link. Having read that, my understanding would be that as the home is worth approx £500k there would be no loss of RNRB were she to sell whilst alive as my brother & myself are the sole beneficaries.

Yes, selling the house does not impact her estate’s IHT exemptions. Do you have power of attorney for your mother?