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Where Taxpayers and Advisers Meet

Widow’s IHT threshold

martin11443
Posts:2
Joined:Wed Aug 06, 2008 3:58 pm
Widow’s IHT threshold

Postby martin11443 » Sun Jan 16, 2022 10:08 am

A widow’s husband died in 1991 leaving his entire estate to her. Their property was jointly owned and is now worth £250k.

Taken together with investments the value of the estate may exceed the IHT threshold.

She will leave her estate to her two children only.

Will the IHT threshold be £825k or £1M.

Many thanks.

maths
Posts:8430
Joined:Wed Aug 06, 2008 3:25 pm

Re: Widow’s IHT threshold

Postby maths » Sun Jan 16, 2022 10:49 pm

Widow should have her own 325k nil rate band plus 175k er her RNRB. She will also be entitled to a transfer from her husband's death of 325k and 175k.

So total "allowances" to widow £1m.

AGoodman
Posts:1419
Joined:Fri May 16, 2014 3:47 pm

Re: Widow’s IHT threshold

Postby AGoodman » Mon Jan 17, 2022 12:05 pm

maths - the property is only £250k so she cannot use all the RNRB.

I think her threshold would therefore be £650+£250 = £900k

Mike7
Posts:1
Joined:Mon Apr 04, 2022 3:19 pm

Re: Widow’s IHT threshold

Postby Mike7 » Mon Apr 04, 2022 3:26 pm

Postby maths »Sun Jan 16, 2022 10:49 pm

']'Widow should have her own 325k nil rate band plus 175k er her RNRB. She will also be entitled to a transfer from her husband's death of 325k and 175k.

Wait up - -what is this?''

The husband died in 2009 and the transfer of nil rate band only occurred from 2007?

maths
Posts:8430
Joined:Wed Aug 06, 2008 3:25 pm

Re: Widow’s IHT threshold

Postby maths » Mon Apr 04, 2022 6:33 pm

Husband died in 1991 not 2009. The TNRB applied wrt surviving spouses who died on or after 9 October 2007 (as is the case here).

Re AG's comment, he is correct that although as I said the surviving spouse's combined reliefs aggregate to £1m, the RNRB plus TRNRB of £350k is in fact limited to 250k (the value of the house) left to children.


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