A second marriage brings the benefit of a transferable nil rate band of inheritance tax when assets are passed to the surviving spouse. However, if the estate of the re-married spouse already has a transferable a nil rate band from their late spouse, this tax free allowance is lost unless it is used in their Will. This is because up to one nil rate band is transferable between spouses.
To illustrate, Mr Beans received the estate of his late wife Mrs Beans, therefore Mr Beans shall make use in his Will of the nil rate band transferable from Mrs Beans’ estate or that tax allowance will be lost.