DIY Probate and IHT thresholds

Jamiecork

My mother died recently, and after reading advice on MSE and elsewhere it seems that pursuing Probate ourselves, without a solicitor, is the obvious way to go.  It's a fairly simple estate - a few bank accounts, an ISA and one mortgage free property.  My sister and I are the two executors of the will and the only two beneficiaries.  We have the original will.  My father died several years ago.  The area where I need advice please, is inheritance tax.
My understanding is that the estate's total value will be around £700,000.  I therefore need to notify HMRC with form IHT400 as the estate is worth more than the £325,000 IHT threshold.  However there are two other aspects to IHT which apply here.
1.  The Residents Nil Rate Band - which states that IHT is scrapped where parents pass on a main residence to direct descendants, up to a value of £1,000,000 per couple.
2. Jointly owned properties - (I could be wrong on this one) I believe that where a property was jointly owned by a husband and wife, and one pre-deceases the other, the IHT threshold of £325,000 applies to each, thus effectively doubling it to £650,000.  
My question is, is my understanding of this correct?
Many thanks everyone

Keep_pedalling

Did your father leave everything to your mother? 

If so then yes his unused nil rate band can be transferred doubling up the nil rate band to £650k you also have her residential nil rate band to use to cover the rest of her estate.

xylophone

See https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold

WaywardDriver

To repeat a suggestion I made elsewhere, start filling in IHT205 and your answers will point you to supplementary forms re transferrable allowances. May also point you towards IHT400 instead of IHT205. 

sarahjane1408

Hi

I am sorry to hear about your mother.

If your mother was widowed and the predeceasing spouse left everything to her, then you can claim the 'transferable nil rate band' over to your mum's estate which will result in a total nil rate band of £650,000.   It doesn't quite work how you have summarised in your initial question but the end result is the same.

You can also claim the residence nil rate band for both your mum's estate and a transferable nil rate band for the predeceasing spouse's estate.  If you need to claim the residence nil rate band then this will push you into doing the long form IHT400 you mentioned and the various supporting schedules.

If the estate stays below £650,000, then you can do IHT205 and IHT217.

Hope that is helpful.

Best wishes

Sarah

If the estate falls below £650,000

Bossyboots

You can do it all online which will be considerably easier if no IHT is payable.