IHT selling home instead of leaving it to children

mebu60

Friend's father now in care. Will leaves house to her and sibling which increases IHT threshold to £500k. Estate is £1m - £1.5m. The children are putting the house on the market now.
If it's sold and converted to cash before his demise presumably the IHT allowance drops to £325k? 

p00hsticks

No, they may still be able to claime the RNRB allwoance under the downsizing rules
How downsizing, selling or gifting a home affects the residence nil rate band - GOV.UK 

Keep_pedalling

Is he a widower?

mebu60

Keep_pedalling said:

Is he a widower?

Yes. 94 years old. 

mebu60

p00hsticks said:

No, they may still be able to claime the RNRB allwoance under the downsizing rules
How downsizing, selling or gifting a home affects the residence nil rate band - GOV.UK 

Brilliant, many thanks for the steer, much appreciated. Keep_pedalling said:

Is he a widower?

Yes. If his wife's allowance was unused does that potentially mean £325k + £325k + £175k? £825k? 

Keep_pedalling

mebu60 said:

p00hsticks said:

No, they may still be able to claime the RNRB allwoance under the downsizing rules
How downsizing, selling or gifting a home affects the residence nil rate band - GOV.UK 

Brilliant, many thanks for the steer, much appreciated. Keep_pedalling said:

Is he a widower?

Yes. If his wife's allowance was unused does that potentially mean £325k + £325k + £175k? £825k? 

No, you missed the transferable residential NRB which will take it to £1M providing his home is worth at least £350k.

mebu60

Keep_pedalling said:

mebu60 said:

p00hsticks said:

No, they may still be able to claime the RNRB allwoance under the downsizing rules
How downsizing, selling or gifting a home affects the residence nil rate band - GOV.UK 

Brilliant, many thanks for the steer, much appreciated. Keep_pedalling said:

Is he a widower?

Yes. If his wife's allowance was unused does that potentially mean £325k + £325k + £175k? £825k? 

No, you missed the transferable residential NRB which will take it to £1M providing his home is worth at least £350k.

I think it's Hampshire so very likely! That's most useful, thank you. I shall pass on the information while we're ambling around south Lincolnshire countryside tomorrow.