Inheritance Tax

[kanwal3017]

Both my parents have passed away recently. What is the iht threshold once both parents pass away

[Barmaid]

They each have £325,000 in personal allowance (as long as no taxable gifts were made in the 7 years prior to death) - this is the nil rate band.  In addition if they owned a property which is left to their direct descendants, each have a further £175,000 (the residence nil rate band) - depending on value of property.  So potentially there is a £1m of exemptions before IHT is payable.  This is in very general terms though and you should take specific advice.

[Hopkirk]

Is there are danger that one could inherit from the other, then there is only one allowance?

[Barmaid]

If that happens, Hopkirk, and assuming they are married, the unused nil rate band of the first to die can be transferred to the second to die.

[Hopkirk]

That's good 

[Peter Pedant]

thx barmaid