Inheritance tax allowance transfer after death of 1 parent. Do I need to complete any forms??

Brilley

Hi all,

I am trying to work out potential inheritance tax. Mother passed away 5 years ago and left everything to father. Current estate, with property is worth around £500k. (ie exceeds the £325k limit).

On the death of the first parent does their inheritance tax allowance automatically go to the surviving parent, (ie ging a total of £750k), or do any forms have to be completed for this to be registered??

Many thanks for any replies...

Brie

I believe it's automatic with no forms registered but this is only if they were married.  Not all parents are. 

Keep_pedalling

No you don’t have to do anything on the first death, all you need to on his death is claim the transferable NRB from your mother, which would give an excepted state under £650k. Only if it was over that would you need to claim the residencial NRB which would require a full IHT return to be made. 

Your fathers estate would actually need to be over £1M before IHT would need to be paid.