IHT205/400 and residence nil rate band

jsatellite

The value of my late mother's estate including her house is about £350,000, so just over the tax threshold. My sister and I are the only beneficiaries. Our father died 40 years ago (we lived in New Zealand at the time) leaving everything to Mum. I could claim to transfer his unused nil rate band, but as his estate was in NZ I'm not sure it would be valid. Alternatively I could apply the residence NRB. Either way, there shouldn't be any inheritance tax to pay. So would that qualify Mum's estate as an "excepted estate"? And could I use the simpler IHT205 form rather than the full IHT400? When getting quotes from probate solicitors, one said they'd be submitting IHT205, the other IHT400. Any clarity would be appreciated.

Keep_pedalling

There is nothing stopping you claiming the transferable NRB. His place of residence at the time of his death does not matter.

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm43042

Unless your mother’s estate is complex you and your sibling should be able to complicate probate without engaging a solicitor to do it. Apart from the expense solicitors usually take much longer to complete probate than executors doing it themselves.

WaywardDriver

But is there any need to claim transferrable NRB as estate inc house is £k350 which is below the £k325 personal plus £k175 residence = £k500 total.

jsatellite

WaywardDriver said:

But is there any need to claim transferrable NRB as estate inc house is £k350 which is below the £k325 personal plus £k175 residence = £k500 total.

That would be more straightforward. Looking at IHT435 (to claim for RNRB), it asks for an inheritance tax reference number. Do you know if I have to apply for that even though there won't be tax to pay?

jsatellite

Keep_pedalling said:

Unless your mother’s estate is complex you and your sibling should be able to complicate probate without engaging a solicitor to do it. Apart from the expense solicitors usually take much longer to complete probate than executors doing it themselves.

Yes, solicitors say 3 months just to apply, then 6-9 months to administer (and several thousand of pounds). Whereas I'm seeing people on here granted probate with a couple of weeks or a month. It's just my sister that needs convincing.

WaywardDriver

jsatellite said:

WaywardDriver said:

But is there any need to claim transferrable NRB as estate inc house is £k350 which is below the £k325 personal plus £k175 residence = £k500 total.

That would be more straightforward. Looking at IHT435 (to claim for RNRB), it asks for an inheritance tax reference number. Do you know if I have to apply for that even though there won't be tax to pay?

Other forms e.g. IHT406 say IHT Ref Num if known which you might assume should also apply to IHT435.
IHT422 (application for ref num) makes it clear only needed if IHT to pay.