Inheritance Tax with 2 Deceased Husbands

JLuxton01

Hi,
My mother has lost two husbands to cancer. Her first husband (my father) passed his entire estate to her so didn't used any of his inheritance tax allowance(s). Her second husband passed some of his estate to her and some direct to his kids therefore using some of his.

The simple premise of my question is whether she is able to go back and utilise her first husbands unused allowance (i.e. the full £500k between nil rate band and residence nil rate band) or whether the fact she re-married renders this redundant and she only has access to the unutilised portion of her second husbands allowance..?

I have read articles which suggest you can claim unused bands for more than one deceased spouse however this is ultimately capped at the £500k monetary amount for an individual.

Thanks in advance for any guidance.
James.

Marcon

JLuxton01 said:

Hi,
My mother has lost two husbands to cancer. Her first husband (my father) passed his entire estate to her so didn't used any of his inheritance tax allowance(s). Her second husband passed some of his estate to her and some direct to his kids therefore using some of his.

The simple premise of my question is whether she is able to go back and utilise her first husbands unused allowance (i.e. the full £500k between nil rate band and residence nil rate band) or whether the fact she re-married renders this redundant and she only has access to the unutilised portion of her second husbands allowance..?

I have read articles which suggest you can claim unused bands for more than one deceased spouse however this is ultimately capped at the £500k monetary amount for an individual.

Thanks in advance for any guidance.
James.

Potentially yes (unless today's Budget changes that), but her will needs careful drafting, so professional advice is essential. 

Keep_pedalling

No changes to either transferable NRBs in today’s budget. Either, or in some cases both, can be claimed but for simplicity it would be sensible to use those from her first husband.