Early Inheritance/Gift & Inheritance Tax

Hi,

I'm just wondering if anyone can help verify whether my understanding of inheritance tax rules is correct.

In 2022, my husband and I were gifted £200k early inheritance from my grandmother and grandfather. We used this to buy and set up our home. My brother was gifted the same amount but this was put into a Vulnerable Person Trust for him. I am trying to clarify whether there are any circumstances under which my husband and I would need to pay inheritance tax on the £200k that was given to us.

My grandparents are both alive. I understand that when one of them dies, the tax free allowance will transfer to the other, so that the remaining grandparent (probably my grandmother) will have an allowance of £650k.

I know that when my grandmother passes, her estate will consist of property, money etc and also any monetary gifts given in the past 7 years, i.e. the £200k given to us. My first question is: Will the gift given to my brother be included in the estate for inheritance tax purposes, even though it went into a vulnerable persons trust?

Secondly, I read on one of the government website pages that the inheritance tax free allowance is used up by gifts first. Does this mean, that provided my grandparents don't give any more monetary gifts, the gifts mentioned above would be covered by the allowance, and therefore my husband and I won't have to pay any inheritance tax upon my grandmother's passing? I.e. £650k allowance - £400k (£200k to me & my husband + £200k to my brother) = £250k allowance remaining to be used for some of the rest of her estate.

Thanks in advance for any help :)