Mum recently passed, starting DIY Probate - Help please

bsmm228

Hi all
I am just about to start Probate following my Mum's recent passing. I am the Executor of her will. She has a property but not much else, any savings were used on her funeral. The property is worth approx. £350,00 and is left to myself and my sister. When Mum was alive she had a small interest only mortgage, when the 25 years were up she did not have the funds to clear the mortgage and so I paid this, approx. £25,000, with a redundancy payment I had just received, on the proviso that I would get this back when she passed away and the property was sold. My question is, can I or should I show this as a debt against the estate and if so, how do I do that.

If I cant we will be just on the cusp of Inheritance Tax. I have read that if a property is left to surviving children this can increase to £450,00, is there a form that needs to be filled in to claim this higher rate?

I would appreciate any advice.

Thanks

getmore4less

Any deceased spouse?

bsmm228

Yes, my dad passed away in 2006. I've read that I can claim for his unused part, but the form looks pretty complicated.

Keep_pedalling

If your father left everything to your mother then her estate would need to be over £650k before you need to look at the main residence nil rate band.

Just claiming for the transferable nil rate band means you should be able to get away with using IHT 205 which is much simpler than IHT400 which has to be used if claiming the residence nil rate band.

As for the £25,000 you used to pay off the mortgage, is this documented as a loan to you mother in any form?

Tom99

You need Form IHT217 to claim your father's £325k
https://www.gov.uk/government/collections/inheritance-tax-forms

getmore4less

bsmm228 wrote: »

Hi all
I am just about to start Probate following my Mum's recent passing. I am the Executor of her will. She has a property but not much else, any savings were used on her funeral. The property is worth approx. £350,00 and is left to myself and my sister. When Mum was alive she had a small interest only mortgage, when the 25 years were up she did not have the funds to clear the mortgage and so I paid this, approx. £25,000, with a redundancy payment I had just received, on the proviso that I would get this back when she passed away and the property was sold. My question is, can I or should I show this as a debt against the estate and if so, how do I do that.

If I cant we will be just on the cusp of Inheritance Tax. I have read that if a property is left to surviving children this can increase to £450,00, is there a form that needs to be filled in to claim this higher rate?

I would appreciate any advice.

Thanks

bsmm228 wrote: »

Yes, my dad passed away in 2006. I've read that I can claim for his unused part, but the form looks pretty complicated.

Looking like IHT is not a problem with transferable NRB

What evidence do you have there was a loan?

If not, does sis accept there was one.

If no supporting evidence there was a loan but sis is happy there was a loan then unless she has potential IHT issues with her estate due to a £25k PET she just gifts you the money.

Many would just document the loan on the IHT forms as HMRC probably won't be interested on this estate and should sis die no need to mention it on her estate