IHT increasing threshold to £500k

marky.fitz

Hi just had a simple query regarding Inheritance tax that hope someone can help with.
To increase the IHT threshold from £325k to £500k is it a case of just ensuring the will states ownership of property will pass to the children?
For this to be valid would we have to live for a set period of time after the will has been amended or is that only applicable to fully avoid paying any IHT we have to live for 7 years after.
hope this makes sense and will be speaking to solicitor in near future but just wanted some advice in the first instance.
thanks in advance of any information.
mark 

Keep_pedalling

No, the house does not need to be mentioned, and it is generally a bad idea to do so in case you no longer own it at your death. As long As the bulk of the estate goes to direct descendants the RNRB can be claimed.

Are you married or in a civil partnership?

Frogletina

Just to note. The maximum RNRB is £175,000, but could be lower if the house is worth less than this amount. 

EG, if house left to direct descendants is only worth £100,000, then IHT threshold is £425,000, not £500,000. 

macman

The 7 year rule applies to gifts made before death: nothing whatsoever to do with the date that you make a will.

theoretica

The property allowance can even be claimed if the property has been sold before death - to not penalise people who move into sheltered living or the like.