NRB

[Wellin]

If the only beneficiary of the will is a spouse am I correct that the whole estate transfers to the spouse without IHT liability irrespective of value and the NRB also moves to the spouse with the estate, thereby rolling up the whole estate and allowances for IHT to the second death.

However if on the first death estate is left to te children but does not reach the full NRB is the remainder of the NRB transferred to the survivor

Thanks for any comment.

[Peter D]

Yes the remainder does, by percentage. Beware that if this includes a share of the property that the spouse continues to live in rent free, then the children will have a CGT liability when disposed of. You need some professional face to face advice on this matter. Regards Peter

[Lee Young]

Also the spouse exemption does not apply in full if the recipient surviving spouse is not domiciled in any part of the UK.

[Wellin]

Yes the remainder does, by percentage. Beware that if this includes a share of the property that the spouse continues to live in rent free, then the children will have a CGT liability when disposed of. You need some professional face to face advice on this matter. Regards Peter

Hi Peter, not clear on your comment here but do understand the % rule.

I believed If the home was left to the children on the first death and survivour continued to reside there rent free then the whole of the home was treated as part of the survivours estate for IHT. I assume CGT is subject to the home rising in value over the probate valuation.

Also can the cash residue from the first estate left to the children be exchanged/transferred for the survivours share in the home to provide cash for the survivours benefit

many thanks