Remove ads

Introducing the LemonFools Personal Finance Calculators

Probate

Practical Issues
Snowbadger
Posts: 20
Joined: December 21st, 2016, 12:32 pm
Has thanked: 2 times
Been thanked: 38 times

Probate

#144797

Postby Snowbadger » June 10th, 2018, 11:08 am

My mother in law passed away last week and I shall attempt to do the probate. Her estate is slightly more than the single persons allowance of 325k but I understand she can also claim her husbands relief ( he passed away fifteen years ago ). Is there a box or something on the forms or do I have to write to HRMC.

Many thanks,


SB

PinkDalek
Lemon Quarter
Posts: 2336
Joined: November 4th, 2016, 1:12 pm
Has thanked: 419 times
Been thanked: 461 times

Re: Probate - IHT

#144803

Postby PinkDalek » June 10th, 2018, 12:03 pm

Snowbadger wrote:My mother in law passed away last week and I shall attempt to do the probate. Her estate is slightly more than the single persons allowance of 325k but I understand she can also claim her husbands relief ( he passed away fifteen years ago ). Is there a box or something on the forms or do I have to write to HRMC. ...


It is the unused Inheritance Tax threshold (or 'nil rate band') from the previously deceased spouse or civil partner that can be claimed, depending on the circumstances. Broadly, if 100% of his estate went to the spouse, then her estate should be entitled to 2 x the now applicable nil rate band, subject to any adjustment needed in view of box 10 included below, headed Total chargeable value of gifts and other transfers of value made in the 7 years before the date of death.

The form itself is IHT402 and may be found here, noting the Information you will need :

https://assets.publishing.service.gov.u ... IHT402.pdf

The £325,000 you mention is the nil rate band ignoring property. If a residence property was involved in your m-i-l's estate on death, then it may benefit from the additional threshold (or residence nil rate band (RNRB)) for Inheritance Tax in various circumstances as shown below, depending on the market value of the residence. Noting (For deaths in the following tax years it will be: £125,000 in 2018 to 2019), whereas the examples use a larger additional threshold applicable in later years.

https://www.gov.uk/guidance/inheritance ... -rate-band

Snowbadger
Posts: 20
Joined: December 21st, 2016, 12:32 pm
Has thanked: 2 times
Been thanked: 38 times

Re: Probate

#144809

Postby Snowbadger » June 10th, 2018, 12:49 pm

Thanks PD,
I presume I just have to add up any gifting from my F in L passing, and reduce as appropriately ( I don't remember any! ).


Once again

Thanks for prompt concise response,

SB

PinkDalek
Lemon Quarter
Posts: 2336
Joined: November 4th, 2016, 1:12 pm
Has thanked: 419 times
Been thanked: 461 times

Re: Probate

#144848

Postby PinkDalek » June 10th, 2018, 6:34 pm

Snowbadger wrote: ... I presume I just have to add up any gifting from my F in L passing, and reduce as appropriately ( I don't remember any! ). ...



You need to look at how his estate was distributed on his death (if all to his spouse, then they can be ignored, assuming the surviving M-i-L was UK Domiciled).

You also need to look at any gifts he made in the previous 7 years, that were not covered by the other reliefs and exemptions available at the time of such lifetime gifts (such as the spousal exemption and the annual IHT exemption of £3,000), which would have used up part of his nil rate band.

If any Trusts were involved or he had made Gifts with Reservation, matters would get far more complicated, as can be seen below (hoping that's not relevant, from what you've said earlier):

https://www.gov.uk/hmrc-internal-manual ... /ihtm43020 and thereabouts.

Snowbadger
Posts: 20
Joined: December 21st, 2016, 12:32 pm
Has thanked: 2 times
Been thanked: 38 times

Re: Probate

#144873

Postby Snowbadger » June 10th, 2018, 9:39 pm

Once again PD,
thanks for your reply. I have spent the day reading the relevant information and filling out the forms and I may regret saying this but it all looks rather straight forward. As I am not the executor but the brother in law who has all things finance related dropped in his lap I will find the most difficult part chasing up signatures.
My F-in-Law died intestate 15yrs ago, so one form to transfer unused nil rate band, one for probate application and one for estate information. Simples. Difficult to see how it can cost so much from a solicitor.

Once again,

thanks for all your help

SB

Jabd2001
2 Lemon pips
Posts: 205
Joined: November 4th, 2016, 10:58 am
Has thanked: 51 times
Been thanked: 51 times

Re: Probate

#144898

Postby Jabd2001 » June 11th, 2018, 7:15 am

Is there an additional form to claim residential property nil rate band?

PinkDalek
Lemon Quarter
Posts: 2336
Joined: November 4th, 2016, 1:12 pm
Has thanked: 419 times
Been thanked: 461 times

Re: Probate

#144930

Postby PinkDalek » June 11th, 2018, 11:20 am

Jabd2001 wrote:Is there an additional form to claim residential property nil rate band?


This should be the full list of current IHT forms:

https://www.gov.uk/government/collectio ... -tax-forms

The relevant forms appear to be IHT435 and IHT436.


Return to “Taxes”

Who is online

Users browsing this forum: No registered users and 1 guest