Should I put my second husband on house deeds to save on inheritance tax and care fees? HEATHER ROGERS replies

My first husband is deceased and I remarried more than 20 years ago. I have two children and my second husband has three children.The house we live in is worth approximately £385,000 and is in my sole name as it was paid for before my husband moved in.

1. ‎ If I put the house in both of our names (50/50 share) would I then have to use his share of the house to fund any future care home needs he may have (he is nine years older than me and we are both pensioners)?2.

If the house stays in my sole name, am I correct in thinking that on my death my estate will receive the £325,000 inheritance tax allowance plus £125,000 allowance for leaving the house to my two children? I assume the estate would not benefit from the £325,000 allowance from my husband as his name is not on the deeds?We have adequate pensions to cover our everyday needs so my capital won't go down unless I spend it on holidays or home improvements.

I currently have £200,000 in savings so I am looking to see what options I have and would appreciate any guidance that you can provide. Home ownership: What happens if a property is one spouse's sole name?Heather Rogers replies: Your questions about home ownership, care costs and inheritance tax will be of interest to many readers.

And as you are a widow, there are further matters to consider regarding your late husband’s estate.Let's look at each of these topics in turn, but first there is an important issue to clarify regarding inheritance tax thresholds.The main threshold, the nil rate band of £325,000 (£650,000 for a couple), applies to the whole of an estate.

The additional residence nil rate band of up to £175,000 (£350,000 for a couple), for those passing a property to direct descendants, applies to the family home. RELATED ARTICLES Previous 1 Next How couples who save together can boost their pensions Could capital gains tax match income tax under a Burnham... Share this article Share HOW THIS IS MONEY CAN HELP What you need to know each week: Listen to the This is Money podcast Inheritance tax and home ownershipFamily home is solely in the name of one spouse or civil partnerRegarding inheritance tax, it is worth noting here that many people worry they will not be able to use the RNRB if a property is in the name of one spouse only.

They wrongly believe that if the non-home owning spouse dies first, they will not have any property to leave to their descendants.But RNRB is transferrable between spouses in the same way as the NRB.Providing that an estate qualifies for RNRB, then both spouses' allowances should be available to offset on the second death.

So in answer to your question, if your current husband dies first, any of his unused NRB and RNRB will pass to your estate, or yours will go to his estate if you die first. How much is inheritance tax? Tax of 40 per cent is typically levied on a deceased person's assets worth over and above £325,000, which is called the nil rate band, explains Heather Rogers.

Many people are allowed to leave a further £175,000 worth of assets without them becoming liable for inheritance tax, if their home forms part of their estate and they leave it to direct descendants.That means children, including adopted, step or fostered, and those children's linear descendants.This extra sum is what is called the residence nil rate band, and it is available to claim on deaths on or after 6 April 2017.

Both protected amounts or 'bands', adding up to £500,000 per person, can be transferred to a surviving spouse or civil partner if unused on the death of the first spouse. Joint tenants, where both own the property together as oneBoth spouses own the property but they own it together. Although they might technically own 50/50, the actual split is not identified and they are treated as owning the property jointly – as one, if you like.

On the death of the first spouse, the property automatically passes to the second spouse under what is known as the survivorship rules.Nothing contained within the will can change that – the survivorship rules override the will.This means that there is no choice as to how the property is passed on after the death of the first spouse.

This can be an issue if both parties have been married before and have children from earlier relationships.Tenants in common, where you own a specific share of the property eachThis is where you own a specific share each, and therefore can decide what happens to your share on your death, as it does not automatically pass to the other co-owner.If your property is owned as tenants in common, there will be a restriction noted at the land registry and it will say: 'No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.'

How does the RNRB work?The residence nil rate band enables a residence to be passed to lineal descendants, meaning your children, grandchildren, great grandchildren and so on - see a fu