RNRB allowance

[mill]

On the assumption that the second to die of a couple (the first to die having left everything to the second to die) then the second to die has a current exemption of £900,000 on condition that the family home is left to the children or grandchildren.

1) If the family home is valued at less than the currently available extra RNRB IHT allowance of £250,000, is the RNRB allowance then limited to the market value of the family home or can any surplus of the £250,000 be applied to the rest of the deceased estate?

2) Is it correct that claiming the RNRB allowance automatically precludes use of the simple Form IHT205 for probate, and the application for probate must then be submitted on the more complex IHT 400, even though the estate (excluding the family home) is less than £650,000?

[AGoodman]

1. It is limited to the value of the home
2. Yes, I believe so - although do you need to claim it if you have two nil rates bands?