Standard IT threshold or not?

ANGLICANPAT

If a spouse dies  leaving a will stating they leave  £X 's  to their  offspring ,  and the rest of their assets to their  spouse   (which includes although not specifically mentioned , half the family home as its  held as t in common)---does this mean  the inheritance  tax threshold   would remain standard as they hadnt left the property  to a direct descendant, or  would it be enhanced with the property allowance ?

Brie

As far as I understand IHT remains the same no matter who gets what in the will.  

Rodders53

Some of the Nil Rate Band of IHT will be used up by those bequests, so less than the full £325k (currently) will be transferrable on second death.

If the 1/2 share in the property wasn't left in "a lifetime trust for surviving spouse" then there was no point in severing the tenancy...  but anyway if the property value exceeds £175k x 2 when second spouse passes then that (or value of property if lower) will be available on the second death.

But who knows for sure what Labour plan to do with IHT... it may be all change soon.

Keep_pedalling

It would b3 rather foolish to take the children’s share out of the home, as that is likely to lead to lead to more tax in the form of CGT when the house is eventually sold. A sensible will would put the half share into an immediate post death interest trust with the surviving become the life tenant.