Calculating inheritance tax in an unusual situation

MobileSaver

1. A married couple lived for many years in a house that was actually owned by wife's brother. 
2. The brother died and left the house to his sister (the wife in the couple) but she died two years later before the house was actually transferred into her name.
3. The wife's estate was worth £750,000 and via intestacy she left the £450,000 house to her husband who has now passed away. 
4. The husband has left the estate including the house to their three children.

The estate now is made up of:
House £750,000
Agricultural Land £150,000  (so 100% Agricultural Property Relief)
Cash £50,000

Will there be IHT to pay and/or what other exemptions/reliefs are available to the estate?

Marcon

MobileSaver said:

1. A married couple lived for many years in a house that was actually owned by wife's brother. 
2. The brother died and left the house to his sister (the wife in the couple) but she died two years later before the house was actually transferred into her name.
3. The wife's estate was worth £750,000 and via intestacy she left the £450,000 house to her husband who has now passed away. 
4. The husband has left the estate including the house to their three children.

The estate now is made up of:
House £750,000
Agricultural Land £150,000  (so 100% Agricultural Property Relief)
Cash £50,000

Will there be IHT to pay and/or what other exemptions/reliefs are available to the estate?

I appreciate you'd prefer not to splash out on legal fees, but I think you might be overestimating what a site like this can do. Some proper legal advice (from someone who has all the relevant facts - there's a lot of essential information missing in your post - and is insured to advise) would be a much safer route to go, and the estate clearly has the means to pay for this.

Keep_pedalling

If she died intestate then not all of her estate would go to her husband just the first £322k and 50% of every thing over that meaning that the children were entitled to £214 of her estate.

This would mean that her husbands estate would have total IHT exemptions of £1M - £214k = £786k so IHT would be due on £14k of the estate. This assumes nether made non exempt gifts in the 7 years before their deaths.

poseidon1

MobileSaver said:

1. A married couple lived for many years in a house that was actually owned by wife's brother. 
2. The brother died and left the house to his sister (the wife in the couple) but she died two years later before the house was actually transferred into her name.
3. The wife's estate was worth £750,000 and via intestacy she left the £450,000 house to her husband who has now passed away. 
4. The husband has left the estate including the house to their three children.

The estate now is made up of:
House £750,000
Agricultural Land £150,000  (so 100% Agricultural Property Relief)
Cash £50,000

Will there be IHT to pay and/or what other exemptions/reliefs are available to the estate?

Quick succession IHT relief maybe available given the transition of a substantial part of the estate ( the house) through 3 separate hands - see article below

https://www.weightmans.com/insights/a-guide-to-quick-succession-relief/#what-is-quick-succession-relief

However, you will require an experienced solicitor to navigate and calculate the extent of the relief in this particular circumstance, since relief is denied in situations where the spousal IHT exemption maybe in point.