A husband and wife own the marital home jointly. They have each made a will leaving everything to the other, whom failing in each case, their four adult children.
If either spouse dies and the house is worth, say, 425000, presumably no IHT will be payable as the husband and wife together have a nil rate band of 650000.
However, I understand that if the house is left to the four adult children who are direct descendants of the married couple, a further 175000 nil rate band becomes available.
Could someone advise me how much IHT will be payable on the estate of the first spouse to die, and how much nil rate band will be available when the other spouse dies?
And beyond that, when the last surviving spouse dies will the 175000 still be in play assuming that spouse has left everything to his or her direct descendants?
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