Inheritance tax

artyboy

https://forums.moneysavingexpert.com/discussion/comment/82151454#Comment_82151454

Incorrect - the extra RNRB allowance only applies when passing property on to your own children.

Hence the OPs unhappiness about the effects of their own life choices.

katejo

https://forums.moneysavingexpert.com/discussion/comment/82151460#Comment_82151460

But not necessarily choices. There may well be other reasons beyond someone's control for not having had children.

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82151558#Comment_82151558

OP literally said 'life choices'

wmb194

https://forums.moneysavingexpert.com/discussion/6684799/inheritance-tax

You can begin gifting now to reduce the liability: £3k per tax year IHT tax free, £250 small gifts allowance, regular gifts out of income which don't affect your lifestyle and look into the seven year rule.

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

katejo

https://forums.moneysavingexpert.com/discussion/comment/82151572#Comment_82151572

I think you have missed my point. Being childless may not be a choice.

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82151634#Comment_82151634

I think you have missed my point. That is irrelevant when we are talking about a person who has made it clear this is a life choice.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82151578#Comment_82151578

You can gift as much as you like and provided you keep breathing for 7 years it will fall out of your estate.You can also take out term insurance to cover IHT on gifts to cover you estate from an untimely death.

EthicsGradient

https://forums.moneysavingexpert.com/discussion/comment/82151460#Comment_82151460

Or passing on to grandchildren (which obviously implies children, but the point is that many may prefer to pass property directly to grandchildren - or the child may have died previously).

For residence nil rate band purposes the direct descendant is:

a child, grandchild or other lineal descendant
a spouse or civil partner of a lineal descendant (including their widow, widower or surviving civil partner)
This also includes:

a child who is, or was at any time, their step-child
their adopted child
a child fostered at any time by them
a child where they’re appointed as a guardian or special guardian when the child is under 18

Work out and apply the residence nil rate band for Inheritance Tax - GOV.UK

Bostonerimus1

As a single person with no children I can see the OP's point with the IHT housing allowance for bequests to children and grandchildren. IMO IHT should be determined by the size of the estate and not the nature of a family. Spousal inheritance of an IHT allowance is obviously sensible, but why don't I get an allowance if I leave my house to my nieces? I'd like to see a single person get half the current IHT housing allowance and that the family relationship criteria be removed.

Of course with planning the exposure to IHT can be reduced by single gifts and also by building up a pattern of regular gifting from income.

BridgetTheCat

This is why I plan on spending it all and just leaving my house to be sold and proceeds given to my beneficiaries when I die.