Inheritance tax questions

wonky-penguin

Hi,

Silly questions when filling in the online inheritance estate valuation form for my wife. I'd hoped not to have to fill out this evil form as not IHT would be payable, but one of our banks requires a grant of representation before they let the money go, so I guess I have no choice! #argh

1. Our house was owned as "joint tenants" with a joint mortgage. When filling out my wifes share of the house and mortgage, do I put in the whole amount or just 50% of each?

2. She was paying into an employer arranged private pension with me named as the beneficiary. She was nowhere near retirement age, Scottish Widows sent me a letter offering me a "discretionary payment" with a statement saying "this does not form part of the estate". Does that plan need declaring on the form at all? Or declare with a payout value of zero? So confused

Thanks in advance,

DC

Yorkshireman99

wonky-penguin wrote: »

Hi,

Silly questions when filling in the online inheritance estate valuation form for my wife. I'd hoped not to have to fill out this evil form as not IHT would be payable, but one of our banks requires a grant of representation before they let the money go, so I guess I have no choice! #argh

1. Our house was owned as "joint tenants" with a joint mortgage. When filling out my wifes share of the house and mortgage, do I put in the whole amount or just 50% of each?

2. She was paying into an employer arranged private pension with me named as the beneficiary. She was nowhere near retirement age, Scottish Widows sent me a letter offering me a "discretionary payment" with a statement saying "this does not form part of the estate". Does that plan need declaring on the form at all? Or declare with a payout value of zero? So confused

Thanks in advance,

DC

The discretionary payment does not form part of her estate so nothing about it needs to be put on any IHT form.. Someone else will answer the first question.

SevenOfNine

Similar situation a little while ago. We did not declare the payout on the form as it fell outside the scope of the estate, just as the pension providers had said.

However, we chose to put a short note with the form referring to it. Not necessary as YM99 has said, we just wanted to be absolutely sure we'd made HMRC aware of everything & have no queries or questions further down the line.

No experience of Q1 I'm afraid, 1 home owner &1 mortgagor.

My condolences.

Keep_pedalling

If you are using form IHT205, then it asks you for the deceased's persons share and you put the full value in the box below. If there is a mortgage then it will be his share of the equity you hold in the property.

If you are using IHT400 then you need to put similar info on schedule ITH404.

Tom99

[FONT=Verdana, sans-serif]If you are filling in IHT205 its question 9.2. You put the 50% share in 'Box 9.2' then in the explanation box below you explain that the house is worth £x and the deceased owned 50% so = 50% x £x

[/FONT] [FONT=Verdana, sans-serif]You then enter in Box J on page 7, the 50% of house and all the other assets you have listed above which will pass to you.

[/FONT] [FONT=Verdana, sans-serif]If your wife left everything to you then the figure in Box K on page 7 will = £0[/FONT]