value of tax-free allowance the person who died inherited? question

Babz1986

Hi Everyone,

 I'm just in the process of doing the estimate for probate and struggling with the tax free allowance question.

So my father in law is married to my mother in law, he has passed away recently, leaving my mother in law widowed.

What figure would I put in the 'What was the value of tax-free allowance the person who died inherited?'

Is it £0 - because he's not used any of it? or the full £325k - because that's what he had left?

Thanks

probate_slave

Yes, it's zero. Your father-in-law, as the first to die, can't inherit allowances. He has his own, of course.

It will be your mother-in-law who may inherit unused allowances from him on her own death.

https://www.litrg.org.uk/tax-nic/trusts-and-estates/bereavement-tax-issues-death/inheritance-tax#13

poppystar

I’m not sure that question should have come up. You might want to double check your answer to the question of whether there was a predeceased  spouse - are you sure you said ‘no’ at that point?