Advice please

Manxman_in_exile

Hi, my turn to ask for advice.


MiL died last month. My wife ( a non-practising solicitor) is her sole executor. My wife has notified the "one-stop" govt service and the pension providers that she had at the time. There may be some overpayments but they can be easily repaid from the estate if necessary. There are no other debts.


My FiL died 14 years ago and my wife was sole executor. Everything was in joint names so my wife took the view that probate was not necessary as nothing was part of her father's estate as her mother inherited it all automatically.


My wife estimates her mother's estate to be between 350k to 400k. Split between my wife and her two brothers.


Can anybody help us understand where she may be positioned regards IHT etc?


EDIT: we're happy to use paid for advice if necessary as we have a good STEP solicitor who's done our wills.

Flugelhorn

was there a property?


There is this transferable thingy that a lot of people use to increase the nil rate band to £650k in your MIL's case https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold

means filling in IHT 4... something instead of IHT205

(sorry for not having all the details, just dashing off to work)

Keep_pedalling

Even without the primary residence nil rate band the estate is way under hitting IHT, as your FILs nil rate band is fully transferable.

IHT 400 + IHT 402 for the transfer of the nil rate band, plus any other supplimentary forms that may be required. Should be straight forward without the need to hire a professional.

https://www.gov.uk/government/publications/inheritance-tax-inheritance-tax-account-iht400

Yorkshireman99

Manxman_in_exile wrote: »

Hi, my turn to ask for advice.


MiL died last month. My wife ( a non-practising solicitor) is her sole executor. My wife has notified the "one-stop" govt service and the pension providers that she had at the time. There may be some overpayments but they can be easily repaid from the estate if necessary. There are no other debts.


My FiL died 14 years ago and my wife was sole executor. Everything was in joint names so my wife took the view that probate was not necessary as nothing was part of her father's estate as her mother inherited it all automatically.


My wife estimates her mother's estate to be between 350k to 400k. Split between my wife and her two brothers.


Can anybody help us understand where she may be positioned regards IHT etc?


EDIT: we're happy to use paid for advice if necessary as we have a good STEP solicitor who's done our wills.

You will need probate because of the property. It should be reasonable easy, though time consuming, to do it your self. The banks MUST be notified without delay. Provided the work can be done systematically it should present no problem. Read the !!!8220;stickies!!!8221;. At the start of the forum
and don.t be afraid to ask questions even if they seem silly. One pitfall is that value of the house.if it is being sold then the proceeds split no problem. Otherwise the recipients need to consider any future IHT implications.

Brynsam

Yorkshireman99 wrote: »

One pitfall is that value of the house.if it is being sold then the proceeds split no problem. Otherwise the recipients need to consider any future IHT implications.

....not to mention any CGT liability if the property increases in value after her death.

Tom99

[FONT=Verdana, sans-serif]Its way under £650k so you can use the Excepted Estates route of PA1/IHT205/IHT217

[/FONT] [FONT=Verdana, sans-serif]Very easy for your wife to apply, no need to pay a solicitor.

[/FONT] [FONT=Verdana, sans-serif]https://www.gov.uk/government/collections/inheritance-tax-forms[/FONT]

[FONT=Verdana, sans-serif]Download the forms and help/notes you need then complete the .pdf forms on your computer before printing out. That way you can take your time, correct any errors and any totals and c/f figure will be filled in automatically.[/FONT]

Yorkshireman99

Brynsam wrote: »

....not to mention any CGT liability if the property increases in value after her death.

Thank you for correcting me. CGT was what I meant of course.

Manxman_in_exile

Thank you all. Apologies for not replying sooner but ill(!) over bank holiday weekend.