'Will my mother moving in mean we pay more inheritance tax?'

My mother is moving in with us and it looks as though we will now have to sell her home. We’re worried that this could reduce the amount she can pass on without incurring . Will that be the case?Paul from Orpington

'She'll still get a tax-free allowance'

Mike Croxford, Which? Money expert, says… 

You needn’t worry. The sale of your mother’s home won’t affect the amount she’ll be able to pass on tax-free when she dies. 

As a widow, your mother will get the unused inheritance tax allowances of her late husband, on top of her own allowances. 

Only those who intend to leave a property or its proceeds to their children or grandchildren (including foster and stepchildren) get this RNRB additional allowance.

The government realised that if a person downsized to a smaller property, or even (as in your mother’s case) no longer owned a property at all, it would be unfair for them to lose this additional RNRB. 

Therefore the rules state that if the deceased person owned a property on 8 July 2015, when the laws were first tabled, they would retain the right to this additional RNRB allowance. 

She can give away up to £3,000 per year this way, plus more for the weddings of children (£5,000) and grandchildren (£2,500).

Find out more: 

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source https://www.which.co.uk/news/article/will-my-mother-moving-in-mean-we-pay-more-inheritance-tax-avsED1T9x0EP