Nil Rate Band - giving the house away

[pierrelejohn]

Hi

My father has recently passed away, and left approx £600k estate to my mum

I understand from other answers, that she can use my dads £325k nil rate band when she passes away, so as long as her total estate is less than £650k no IHT will be payable by me or my brother.

What is she gives her house (£200k) or its value to my brother, and does not live for the 7 years.

Would my brother have to pay INT tax on it, or would it be exempt because her estate (at todays value) be under the IHT threshold (of the above £650k)

Thanks
Peter

[maths]

Assuming she does not live in the house after gifting it in lifetime then even if she dies within 7 years of making it, no IHT arises on the recipient of the house. The gift is a PET.

Even if she remains living in the house after gifting it whether she dies within 7 years or not, no IHT arises.

The above is due to her nil rate band on death of £650,000 and her total estate falling below it.

[pierrelejohn]

Thank you
I thought as much !