Probate & inheritance tax

Hughesy84

1st off, how long does probate take to be granted?

Scenario
The 1st spouse died 10 years ago …..& now the 2nd spouse has died
One persons Inheritance Tax limit is £325k, correct? Also if someone dies can they use their previous deceased wife’s allowance too? ….So therefore a tax free limit of £650k – correct?

Now the impartial executor to the will has asked a solicitor to deal with the application for Probate (until granted we havent seen the will)…..he tells us it hasn’t been granted yet, however he has now requested a copy of the original will for the 1st deceased spouse.

Why would this be??
Can it only be that the 2nd will has a greater value than £325k?? Or is there another reason which they can request it for?

We dont want to have to give them a copy if its not necessary and hes simply being nosey?!!?

yelf

The second person to die inherits 100% of the first persons UNUSED Nil Rate Band. The original will would have been requested to see if any of the first person's NRB was used up: therefore reducing the amount transferrable to the 2nd person.

kremmen

Hi Hughsey,

I am not an expert but on your 1st point I think the flip answer would be "how long is a piece of string". It really depends on :-

What state were the deceased records left in.
How long did it take for the various companies to send in financial estimates.
When does your local probate office have appointments .

I can say that in my case I was granted probate in early April for someone who died at the end of January. It involved quite a bit of paperwork and time.

I must ask how you know that the "Impartial executor" is such if you haven't seen the will. Why use a solicitor to do the work as it will cost a fortune. ( If I can do it most people can)

Hope this helps.

Paul

getmore4less

If you want to claim the unused nil rate band the forms ask for documentation that there was an unused nill rate band.

This can be a copy of the previous grant of probate which has the will attatched, if there was no probate(all joint assets) then the will will be required. and it mayeven require further evidence if the tax office suuspect there was tax that should have been paid(joint assets don't preclude a tax bill but can be avoidd untill you need a nir rate band)

If assets are in trust then the previous will may be needed to understand the next step and contract the trustees

If the estate is not an excepted estate it has to go to the tax office first with a IHT400, once the tax people have looked at it they return a form and probate can then be processed.

If an excepted estate < £325k or <650 AND the full nill rate band is avaialble(not just part of it) then an IHT 205 can be used and go straight to the probate office.

depending on how fast the person works and how good the documantation and as long as there are no Santander accounts you could get grant in 2-3 months if there no real delays at the probate office, people have done it in less than a month.


Why have you got into the situation where you need to kee a will from an executor that may have a need to see it. there is no reason to keep a will secret of a person that has had probate it is a public document that anyone can see.

Who was the executor of the previous estate did they do the job properly?

I am not 100% on this but an executor might need to find out where assets came from and the accounts of all previous inheritances should allready be documents in the estats paperwork if they have been distroyed then asking for copies should not be a problem.

refusing to give up a relevent document could just make an executr suspisious that there may have been wrong doing in the past.

Hughesy84

No wrong doing mate....just wanted to know the reasons why they would want the 1st persons will?? When we didnt think the assets met the 325k limit??

The executor is 75+ and doesnt want the hassle so just gone through a solicitor for ease.

The will lists everything I believe and an accountant was used to do his books, so its all in order as to what he has where and when.

Hughesy84

The question im asking basically is….
So is the only reason he would request it because he feels its over the £325k limit??

getmore4less

There might be other reasons

but if it went to probate there will be a copy on public record and they can get that for £5 if the solicitor needs it it will cost a lot more if they do the searches to get it.

why not do, I show you mine if you show me yours.

tazziegirl_2

If you want to claim for any unused nil rate band, then you will need a copy of the pre-deceaseds will to complete the form IHT 402 (together with pobate and any deed of variation) to apply for it, bear in mind you have 2 years from the second spouses death to apply for it, and you do have to apply as its not automatic. Wills are part of public record anyway, so anyone (I think) could access them - no doubt for a fee!

Just gone through this for my mother, she passed away end of January, got probate through last week. Myself and my brother did it and found it tedious but straightforward, and much cheaper than using solisitors.

Hughesy84

When did you apply for it Tazzie?

I understand you can claim the other spouse's allowance....however we didnt think it would be more than £325k - thats why im asking why the solicitor would need to see it?

tazziegirl_2

It was around the middle of February (we made the mistake of sending back the power of attorney paperwork to the office of the Public Gaurdian and had to wait 2 weeks before it was returned) which is needed to complete the IHT 400 form.

I see what you mean (I hope ) that if the nil rate is 325K then why do you need to send anything, but unfortunately they need proof/paperwork that no nil rate band has been used which would be in the will of the first deceased spouse (or any deed of variation to that will) and if it has then the percentage of unused rate can be applied for against the second death. Even if the estate is below the 325k they will still need to see this unless its an excepted estate (under 5k or something I believe)