Inheritance Tax allowance - automatically passes to spouse?

Mellow_gogo

Hi all,

My Dad died just short of 18 months ago. My mum is now almost 84.  

All savings are now in her name, which totals just over £200K - mostly in ISAs. The house is worth approx. £280K. 

I’ve been sorting out a lot of financial and other stuff which has taken time and energy, and am regrettably only now considering the IHT situation. 

My question is - did my Dad’s individual IHT allowance automatically pass to my Mum on his death? Or is there a formal process to be gone through to make this official?

As you can see from the figures, it’s important for my Mum to be able to use my Dad’s allowance if possible to help her remain under the threshold. 

Any info or views much appreciated. 

RAS

If they were married when he died, yes.

If they never married or were divorced, no.

Keep_pedalling

It is not actually automatic, but you can’t don’t claim it until the death of the surviving spouse. 

Even if it was not available you mother also has a residential NRB available which takes her personal exemptions up to £500k so there would still be no IHT to pay on that value of estate.

CalJo99

I believe she should also inherit her late husband's Residential NRB, taking her total IHT-free amount to a million pounds.

Her own: £325
Her Residential extra: £175
Her husband's £325
Her husband's R extra £175.

Mellow_gogo

Thanks all for your replies. One thing less to worry about!