Understanding IHT & allowances

suethedriver

I am currently sorting family finances and would like someone to clarify that i have calculated allowances correctly in my circumstances please ......
                 Mum & Dad Married . age  late 80`s home owner  no mortgage with current Wills
 Mum ..... savings / shares / assets     400K
 Dad  ....  savings / shares / assets      400K     + sole name on house worth approx 450K
          On first death                        ( probably mum due to current health ! ) 
          Me & my brother get  325k shared 50 /50 
          75 K passed to Dad                                        
           
          On Dad death  
          Property passed to me and brother   direct descendants   ( tax free ? or does the house                   value  450k get added on to his 475K ?) 
          Dad assets    now   ...    475k passed to me and brother  50 /50 
          1 x 325 k     ( mums allowance used ?? ) 
           2 x 175k    Residence nil rate 
           =   675 k allowance   
So 
          IF Dad passes on less than 675K we do not pay any IHT  but with house it will be more                925 k   !!! ??? 
          Further to my last post on here  
           IF my mum is not named on the house deeds can we still use her 175 K residence 
           nil rate band allowance ? 
        We are now thinking of putting her name on deeds after previous advice .
THANKYOU 

          
           

Alphatauri

Essentially your parents have a joint IHT threshold of £1m made up of 2 x £325k personal allowances and 2 x £175k RNRB. Note: You need to check if Mum’s name needs to be on the property to get her RNRB. 

As their joint assets are 2 x £400k savings/shares/assets plus a home of £450k = £1.25m so there will be IHT to pay on c£250k.