Joint bank account 7 year rule

Davidoff1871

To assist a daughter with house purchase husband/ wife gift 150k to daughter from joint bank account.Asuume 75k equal split.
7 year rule applies for IHT purposes.
If say the husband dies before 7 years all estate passes to wife - I assume no IHT.
However, does 75k gift get subtracted from husband  transferable IHT allowance to the  surviving wife.
Assume the wife survives over 7 years after gift.

HappyHarry

Davidoff1871 said:

To assist a daughter with house purchase husband/ wife gift 150k to daughter from joint bank account.Asuume 75k equal split.
7 year rule applies for IHT purposes.
If say the husband dies before 7 years all estate passes to wife - I assume no IHT.
However, does 75k gift get subtracted from husband  transferable IHT allowance to the  surviving wife.
Assume the wife survives over 7 years after gift.

Husband's estate will follow his will or the rules of intestate if no will - this does not necessarily mean all will go to his wife. On assets left to a UK domiciled spouse there is no IHT.

The £75,000 (less any annual exemptions that might apply) would be deducted from the husband's transferable nil rate band.To be precise the husband's transferable nil rate band would be reduced by the percentage of the nil rate band he used when making the gift.

Keep_pedalling

Assuming that his entire estate passes to her then yes, the only impact will be a reduction in the TNRB to her estate.