IHT Allowance calculation

Bloo

Hi

I'm trying to calculate my mother's IHT allowance. She inherited the half share of her property from my dad when he passed, as her spouse no IHT was due. The property is now worth £450k. She has savings of £100k. She wants to leave everyhting equally to 2 children. What is her IHT allowance?

She has £325k doesn't she? Can she use her husband's unused nil rate band of £175k(?) allowance too as everything is going to her kids to make £325k =£175k (total £500k)?

I'm aware of options to mitigate IHT, just now sure of the total we're wroking to.

Thanks

Albermarle

She Has a nil rate band of £325K and she has inherited her husbands nil rate band of £325K , so £650K
As the house is left to her children, another £175K as the Residence nil rate band + she has also inherited this from husband as well  , so One Million Pounds in total  before IHT has to be paid.

The £100K savings is nothing to do with the allowances. It will be counted alongside the other assets to see if they exceed One Million, which looks like that will not be the case.

Bloo

Got it!

Thanks

Keep_pedalling

With 2 NRBs available neither residential NRB will be required unless her assets exceed £625k at the time of her death. Not having to claim either residential NRB will avoid the need to submit a IHT return. 

[Deleted User]

Keep_pedalling said:

With 2 NRBs available neither residential NRB will be required unless her assets exceed £625k at the time of her death. Not having to claim either residential NRB will avoid the need to submit a IHT return. 

£650k - typo.

Keep_pedalling

[Deleted User] said:

Keep_pedalling said:

With 2 NRBs available neither residential NRB will be required unless her assets exceed £625k at the time of her death. Not having to claim either residential NRB will avoid the need to submit a IHT return. 

£650k - typo.

Or senior moment👨🏻‍🦳