Inheritance tax and marriage

squirrelpie

A hypothetical question...

I understand that an individual has an IHT allowance of £325,000 and if they are married and then die (or their partner dies) the survivor can inherit the dead partner's allowance, thus giving them an effective allowance of £650,000. And yes, the allowance can be greater if direct children inherit, and there's all sorts of other complexities.

But what if the survivor remarries and subsequently dies (or as before)? Does this second survivor inherit £0, £325,000 or £650,000 allowance?

Marcon

https://www.gov.uk/inheritance-tax

squirrelpie

Marcon said:

https://www.gov.uk/inheritance-tax

Thanks. That page says: "If you’re married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your partner’s threshold when you die." which surprises me, because I thought your partner could inherit your threshold irrespective of the value of your estate?

I thought that was a large part of the mechanism's value.

p00hsticks

squirrelpie said:

Marcon said:

https://www.gov.uk/inheritance-tax

Thanks. That page says: "If you’re married or in a civil partnership and your estate is worth less than your threshold, any unused threshold can be added to your partner’s threshold when you die." which surprises me, because I thought your partner could inherit your threshold irrespective of the value of your estate?

I thought that was a large part of the mechanism's value.

It depends on who you are leaving your estate to..... if you leave everything to your spouse / civil partner , then the whole amount can be inherited. Anything you leave to anyone else get;s deducted from the threshold that can be inherited. ....

In both of the examples on that page, some of the estate is left to someone other than the spouse / civil partner. 

DRS1

I think this may answer the OP's original question (though I can't say I understand the stuff about how to benefit from 3 or 4 NRBs)
Second Marriages – Maximise Inheritance Tax Allowances (UK)

squirrelpie

DRS1 said:

I think this may answer the OP's original question (though I can't say I understand the stuff about how to benefit from 3 or 4 NRBs)
Second Marriages – Maximise Inheritance Tax Allowances (UK)

Yes, many thanks, that's exactly what I was looking for. Once again it seems inheritance law is extremely complex

PS I realise now that my question is probably in the wrong area of the forum, and might be better in the Deaths, Funeral & Probate section if anybody cares to move it.