Transfer of IHT allowance between married couples

loiner

I understand that when one half of a married couple passes away, if their assets are passed in total to the surviving spouse the survivor ‘inherits’ the deceased’s IHT allowance of £325,000. What happens when the surviving spouse then passes? How do the Executors record that this spouse now has an IHT allowance of £650,000?

Keep_pedalling

Assuming they have a marital home the residential NRBs also come into play so the allowance could be high as £1M.

If the estate of the second to die falls under the two NRBs then it it simply a matter of completing the probate form which has a section covering the transferable NRB.

If the estate is above this and one or both residential NRBs are required a full IHT return will need to be completed even if no IHT is due.

loiner

Keep_pedalling said:

Assuming they have a marital home the residential NRBs also come into play so the allowance could be high as £1M.

If the estate of the second to die falls under the two NRBs then it it simply a matter of completing the probate form which has a section covering the transferable NRB.

If the estate is above this and one or both residential NRBs are required a full IHT return will need to be completed even if no IHT is due.

Ah, so it's on the probate form where I will eventually flag this. Many thanks.