Transferable Residence Nil Rate Band (RNRB)

Wackyracers

We are finishing off all the IHT forms and have a question on RNRB.

My father passed away in 1978 and my mother passed away earlier this year. We understand my father has £100k RNRB as he passed away before RNRB was introduced. How much of this is transferable if my mothers estate is worth £2300k. Using the guidelines my mother should get around £25k. It seems unclear using the online calculator how the final NRRB value is reached. Any help would be appreciated.

Keep_pedalling

Had your mother’s estate been under £2M you would be able to claim the full £175k not £100k because it is based on based on a what percentage of the £100k figure was used up on the first death which would have 0%.

With larger estates it gets a bit more complicated because tapering also applies where the first spouse died with an estate in excess of £2M. Assuming back in 1978 your father’s estate was below that amount then you should be able to claim the full amount which would give you £200k in combined RNRB exemptions.

RAS

If your mother's estate is £2.3m, there may be different rules.

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/82010468#Comment_82010468

I always thought that with a married couple ( or civil partners), that only the size of the estate on second death was what mattered for IHT. But here you say the size of the first deaths estate can affect what RNRB can be passed on - I did not know that !

So for a relatively wealthy couple, say with £3M in total assets ( not talking personally by the way !) , it would be wise to have different names on different assets, rather than the large majority all being in one name, to avoid potentially losing some RNRB on first death ?

Also on second death, they would lose their RNRB anyway due to the estate being £3M, but could a transferred RNRB from a first death still be used?