IHT205 (no probate)

jamesmorgan

I'm looking for some advice for a family member. Her husband died recently and left everything to her in his will. They have a house (value around £500K - joint-tenants) and a number of joint bank accounts. Accounts in his name only contain around £3K so should be processable without probate. No IHT is payable as all assets are passing to a spouse. In this situation is it necessary to fill out IHT205? Apart from registering the death and closing any necessary accounts, does anything else need to be done?

Thanks

g6jns_2

jamesmorgan wrote: »

I'm looking for some advice for a family member. Her husband died recently and left everything to her in his will. They have a house (value around £500K - joint-tenants) and a number of joint bank accounts. Accounts in his name only contain around £3K so should be processable without probate. No IHT is payable as all assets are passing to a spouse. In this situation is it necessary to fill out IHT205? Apart from registering the death and closing any necessary accounts, does anything else need to be done?

Thanks

You cannot be sure that the monies will be released without probate. The IHT form is part of the probate process. In any case it may be required for other purposes. It will simplify things when the spouse dies.

Savvy_Sue

I think probate will be needed to transfer the property into wife's sole name, and although that doesn't absolutely have to be done now it may make eventual sale easier.

Plus, looking ahead to her death, it may well make dealing with her will easier.

Tuesday_Tenor

In these circumstances I don't THINK that probate and the IHT form are required, but it's not a scenario I have personal experience of, so may be corrected by others.

However, from reading these boards for a good while, I'm aware that it may be advisable to do it, so that there is a clear record of none/little of the husband's IHT allowance/nil rate band of £325K being used for his estate. Any unused portion can be transferred to the spouse's estate, so when she dies her IHT threshold could be up to £650K, not £325k. With the property worth £500K plus other savings it will be useful to have the double allowance, and most easily handled if the executor of HER estate can refer to the probate/IHT documentation for her husbands estate.

Something to consider ...

Crabapple

Tenor makes a good point.

If Probate isn't needed, then there's not any particular need to get it (the house should be transferable without it if held as you say) but record keeping is a must.

Copy of the Will and details of the asset values that transferred, including joint accounts) is a minimum even if the family don't want/need to deal with things more formally.

getmore4less

As above,
Look up the requirement for the transferable nil rate band on HMRC so you are clear what needs to be kept.

jamesmorgan

Thanks for everyone's feedback. I have checked the situation regarding transferable nil band (form IHT402). Unless I have missed anything, it looks like all you need is a copy of the will and death certificate of the 1st deceased, and the net value of their estate. Obtaining probate doesn't really seem to help with this, so will skip with the admin and (small) cost of doing this. I have also checked with another relative whose parents died in a similar position who confirmed it was the approach they took for the 1st death.

g6jns_2

jamesmorgan wrote: »

Thanks for everyone's feedback. I have checked the situation regarding transferable nil band (form IHT402). Unless I have missed anything, it looks like all you need is a copy of the will and death certificate of the 1st deceased, and the net value of their estate. Obtaining probate doesn't really seem to help with this, so will skip with the admin and (small) cost of doing this. I have also checked with another relative whose parents died in a similar position who confirmed it was the approach they took for the 1st death.

Double check with HMR&C as it could cost dearly if you get it wrong.

jamesmorgan

In case anyone else is interested, I have checked with a solicitor who specialises in this area. There is no benefit in obtaining probate in this situation.