Condolences.
This is a speedy late at night reply and should be taken in that vein. I'm glad to have brought the transferable nil rate band to your attention but the many diversions and some unintended misinformation provided so far hasn't really helped you.
Longtermyieldman wrote:And this is retrospective? As in it applies even though the first spouse (my granddad) died literally 39 days ago today, while my grandma passed only yesterday? If so then we definitely don't need to jump through IHT hoops - though I don't know how we'll be able to prove that he left everything to her, given how long ago it happened.
I provided a link earlier in the thread as to how to
claim*** for a claim is what is needed and that takes you into the realms of IHT paperwork.
Have you had the chance to read it and to see what documentation is required? If not I'll try and remember to come back to the thread tomorrow. Come what may, you may have to jump through IHT hoops, as you put it, but, at last, we appear to be moving in the right direction. One document would be the Will. If you don't have it we can provide a link as to how it can be purchased or it may be mentioned on the IHT402/IHT217. That's assuming he didn't die intestate.
39 years was in the days of Capital Transfer Tax but it looks like you don't have to worry about further additional requirements, as per the link I mentioned, for (first) deaths between 27 July 1981 and 17 March 1986, if my maths at this late hour is correct as to when your Grandfather died (16 January 1981?). 1986 date was when IHT replaced Capital Transfer Tax.
One thing you haven't said, what precisely happened to the bungalow or any other property your Grandmother owned and when?
Any major gifts in the past 7 years?
If needs be, what investments are held? Some may qualify for 100% IHT Business Relief but you may not need to find out if the Estate and any failed Gifts are still below whatever nil rate band is available.
***
https://www.gov.uk/government/publications/inheritance-tax-claim-to-transfer-unused-nil-rate-band-iht402I've yet to check if you are to submit IHT400. I'll have to look at the requirements as it may only be an IHT205 is required but then you may have to be looking at IHT217 ***
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/371956/iht217.pdfI'm ignoring the possible greater bandings for property for the moment, as I said previously, especially as given the size of the Estate you quote, it may not be needed.
I'm also continuing to ignore the ongoing mention of not going through the Probate process. If that's the route you are proposing, I'd get paid for advice rather than relying on some people's hobby horses.
I've written more than I intended so stopping now.
E&OE