IHT advice to reduce large potential charge

They should get professional advice but (i) as recommended above, consider making large gifts to children/grandchild (ii) change the wills so that the first death puts £325k into a discretionary trust with the descendants and spouse as beneficiaries, and the balance of financial assets to spouse. Should part of the house be left to the descendants on first death? Professional advice essential there. It would require them to rearrange the ownership of the house into tenants-in-common.

Keep_pedalling wrote: »

How does the discretionary trust help? I would have thought that just wipes out the transferable nil rate band, so the overall effect would be neutral at best or negative if the nil rate band is ever increased.

If the first to die gifted £325k to his children, the widow-to-be loses all access to it. If he gifts it to a trust with his widow as one beneficiary, the Trustees can advance money, or lend it, to the widow at their discretion e.g. if they believe her to be in need.

Moreover the money won't add to whatever estates the children will have when they die, thus potentially saving IHT in the future.

These are the sort of points that a suitably qualified lawyer would discuss.