Claim to TRNRB IHT 436

rio280915

My Mum died in January and I am Executor of her Will. I am having a lot of problems with the Solicitor handling her Estate. My Dad died in 1997 I am completing the Claim to Transfer his unused RNRB. The Solicitor says that the value to be entered in Box 8 on the Form is £100,000 I am sure it should be £2,000,000. Can anyone advise me please?

xylophone

The Solicitor says that the value to be entered in Box 8 on the Form is £100,000 I am sure it should be £2,000,000. 

According to the notes

4. Taper threshold

The Taper Threshold in the following tax years is £2,000,000 from 6 April 2017 to 5 April 2021. 

The RE gradually tapers away, for an estate valued at more than £2 million even if a home is left to direct descendants. The RE will go down by £1 for every £2 that the value of the estate is over the £2 million taper threshold.

Tapering can also reduce the amount of unused RE available to transfer to a surviving spouse or civil partner, when the first of the couple dies. 

rio280915

Yes I have assumed from reading the notes that if the Estate is lower than £2,000,000 there is no tapering! As my Father died in 1997 before there was RNRB obviously he didn’t use any of it. So my understanding is there is 100% to transfer. So the Residential Enhancement when Mum died is multiplied by 100% and added to her RNRB. Unfortunately the Solicitor doesn’t agree with this. I rang the HMRC helpline this morning and they said they couldn’t help me? 

xylophone

https://www.taxinsider.co.uk/the-transferable-residence-nil-rate-band-extra-iht-savings-ta

rio280915

The article explains the situation well. I can’t get the Solicitor to understand which is worrying. I now have no confidence in what the Solicitor is doing so I am checking everything. She has not included Income Tax due from 6th April 2019 to the Date of Death in the liabilities of the Estate prior to calculating IHT.

xylophone

The article explains the situation well. I can’t get the Solicitor to understand which is worrying. 

I'd suggest that you put your concerns in writing.

Keep_pedalling

Sounds like your solicitor is confusing taper threshold with Rate of Residential Enhancement.

You sound like you know what you are doing, why are you actually using a solicitor? 

xylophone

why are you actually using a solicitor? 

There seem to be substantial sums involved - if the solicitor gets it wrong, the OP has recourse to the solicitor's professional insurance - if he gets it wrong, he is personally liable?

rio280915

Keep_pedalling said:

Sounds like your solicitor is confusing taper threshold with Rate of Residential Enhancement.

You sound like you know what you are doing, why are you actually using a solicitor? 

I have never been the Executor to a Will before. My Mother’s Will was drawn up by the Solicitor who is now “helping” me with the Estate. When my Mother died I was obviously upset and didn’t think I could sort out the Estate myself. I thought I could leave everything to the Solicitor and just sign the documents. Straight away I became aware the Solicitor was making mistakes. So I started reading up on everything on the Internet. I am going to put in a complaint about the Solicitor but I need to get everything sorted first. She has come back to me again today saying her calculation of TRNRB is correct and that she has checked it with a colleague. I know she is wrong but how do I prove it to her?   

rio280915

xylophone said:

The article explains the situation well. I can’t get the Solicitor to understand which is worrying. 

I'd suggest that you put your concerns in writing.

I am going to put in a complaint about the Solicitor once everything has been sorted.

JCR982

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