Transfer of IHT tax allowance for property

Bobinyorkshire

If a spouse inherits the £325k IHT allowance, do they also inherit and retain the £175k for the property too? If so, do they then have  a total allowance of £1M tax relief before IHT is to be paid by their children after death?
Thank you in advance 

Keep_pedalling

Yes & yes.

Bobinyorkshire

Thank you. If they move into a care home and sell the house before they die do they give up both the £175 ie £350k and this drop to £650k? 

RAS

The sale of the property makes no difference. Obviously if the house is £250k, the IHT residential allowance is only £250k on top if the basic £650k.

Bobinyorkshire

Sorry, the thing I’m trying to establish is whether to sell the empty house prior to their total wealth dropping below £650k (250k savings and home £500k). The care costs will reduce this fairly rapidly, but I do not really want to leave an house empty longer than necessary. However, it makes no sense to sell prior to death if the £175k x 2 tax relief (hers and late husband) is lost in advance.
Hope that makes sense

RAS

Sell the house as soon as possible. There will be no additional IHT to pay.

Bobinyorkshire

Thank you 

Keep_pedalling

The RNRB is protected by the downsizing rule in these circumstances. 

Do you have financial power of attorney to enable you to sell the house?

Bobinyorkshire

Yes, both POAs done