IHT - Owner of Property

Tadiva65

Hi, 

Both my husband and myself own a house each - we live in his and I rent mine out.

Each property is in our sole names respectively.

Will our son (eventually) benefit from both our RNRB allowances on both properties or just our main residence?  

And, would the main residence need therefore to be in joint names?

Hope that makes sense, and thanks in advance for any advice.

poseidon1

It will depend on whether you have ever lived in the rental property. If not it will not fulfil the residence criteria for the purposes of the relief.

However it may not need to. If the house you both reside in is worth £350k or more both RNRBs will be applied to that leaving both your NRBs ( 2 x £325k) for your remaining estates including the rental property.

Keep_pedalling

If you die first your unused RNRB will be transferable to your husband’s estate. If he dies first and he leave the house to you then again the unused RNRB will be transferable to your estate. Do you both have wills in place?

One advantage of owning the marital home jointly is it will avoid having to go through probate to transfer ownership on the first death.