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  • FIRST POST
    • charlie792
    • By charlie792 13th Jan 20, 5:21 PM
    • 1,717Posts
    • 5,432Thanks
    charlie792
    IHT - Spouse
    • #1
    • 13th Jan 20, 5:21 PM
    IHT - Spouse 13th Jan 20 at 5:21 PM
    Hi all,

    I've tried googling and searching this forum but couldn't find anything that covered the situation.

    We are in an unfortunate situation of now needing to administer an estate but have a few questions;

    Background
    Husband died 20+ years ago and estate passed to wife.
    Wife later sold up and downsized property.

    Wife has now died leaving behind estate consisting of property and investments.

    As I understand the estate should have at least 325k limit plus 150k main residence nil rate band as is passing to a direct descendant.
    The issue however is that the estate is likely to be very close to or possibly over the 475k limit.

    MSE was slightly confusing however as to whether you can 'inherit' a pre-deceased share.
    It seems to indicate you can as it says "These rules are backdated – so will apply if your partner died before October 2007. The key to how much extra allowance you get relies on the proportion (not the amount) of the allowance that your spouse used" but then it goes on to give an example where the person died in 2008.

    If you can inherit a pre-deceased share (from a spouse who died in the 1990s) then I read it that you should be have whatever % of their unused IHT threshold plus main residence allowance?

    We haven't yet looked at the IHT forms specifically yet but I assume there is somewhere you can list any allowances you have inherited?
    Do you need to provide any proof of this and how exact do you need to be?

    I only ask because the estate is likely to be somewhere between the 475-500 mark so inheriting the main residence allowance alone will be sufficient.

    Many thanks
    MFW 2020 #111 Offset Balance 51,022.99/ 78,714.01
    2020 Target 4,250/ 24,600
    Aug 2014 114,750 -35 yrs (2049)
    Sept 2016 104,800
    Nov 2018 82,500 -24 yrs (2042)

    Aim Mortgage Free by March 2021
Page 1
    • L198913
    • By L198913 15th Jan 20, 1:43 PM
    • 3 Posts
    • 0 Thanks
    L198913
    • #2
    • 15th Jan 20, 1:43 PM
    • #2
    • 15th Jan 20, 1:43 PM
    If the first to die leaves everything to their spouse, then the rule is easy. When the widow dies, her estate gets a double allowance at the rate current at her death. So if a widow died in 2015/16 and she inherited everything from her spouse then her estate gets an allowance of 2 x 325,000 = 650,000.1 Jun 2016 Copied from Saga.co.uk.

    Hope this helps
    • IanManc
    • By IanManc 15th Jan 20, 1:56 PM
    • 948 Posts
    • 1,741 Thanks
    IanManc
    • #3
    • 15th Jan 20, 1:56 PM
    • #3
    • 15th Jan 20, 1:56 PM
    The Government website explains the rules:

    https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold

    • Keep pedalling
    • By Keep pedalling 15th Jan 20, 4:20 PM
    • 7,383 Posts
    • 8,629 Thanks
    Keep pedalling
    • #4
    • 15th Jan 20, 4:20 PM
    • #4
    • 15th Jan 20, 4:20 PM
    The residential NRB is also transferable, regardless of when the spouse dies or even if they ne Er owned a home.
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