We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

IHT: Residence nil-rate-band

Options
Sterlingtimes
Sterlingtimes Posts: 2,522 Forumite
Part of the Furniture 1,000 Posts Name Dropper
Please help me understand the following:

Husband and Wife own a house as joint tenants valued at £600k. The whole estate is valued at £1,200k.

Husband and Wife each have a residence nil-rate band of £175k.

Husband dies. Wife owns the house outright and "inherits" Husband's residence nil-rate band of £175k. 

Wife downsizes and buys a retirement house for £250k.

Wife dies and Son inherits the £250k house and the rest of the estate.

What is the residence nil-rate band from which Son benefits?

Has Wife compromised Son by downsizing?

Ignore inflation. 
I have osteoarthritis in my hands so I speak my messages into a microphone using Dragon. Some people make "typos" but I often make "speakos".

Comments

Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.