IHT Spouse, Gifts - When does the IHT rate apply?

Hello, If 1 parent leaves their estate to their spouse. The estate is worth £300k which includes half of the property value - all this to the spouse. However, the deceased had "gifted" £60k to their (2) children within the last 4 years prior to their death. - Does the Threshold for inheritance tax start at 0? Therefore the £60K is IHT free or does it mean IHT is due on a portion of the £60k?

Inheritance Tax is only due when a person's estate is worth over £325,000 when they die, or if the person who died gave away more than £325,000 in gifts in the 7 years before they died. In this scenario the person in receipt of the gift within those 7 years will be liable to pay inheritance tax.

Gifts made in the last 7 years use up the £325,000 tax free allowance first, but if the gifts received are less than the £325,000 inheritance tax free allowance, any unused threshold can then be used by the estate of the person who has died.

If the person who died owned their home (or a share in it) the tax free threshold could be increased to £500,000.

You can find out more information here:

https://www.gov.uk/guidance/work-out-inheritance-tax-due-on-gifts