IHT205 QUESTIONS

tasticz

Hi All,
Finally coming around to filling in the IHT205 form even thought probate is not needed.

My father (under 60) passed away last year leaving everything to my mother. We have already sorted everything as nobody asked for probate documents (properties were in joint names) and minimal cash in bank / life insurance policy. 

Question 7 of the IHT 205 form asks: 
Did the deceased have any kind of pension arrangement other than the State Pension? Yes or No
If you answered ‘No’, go to the next section ‘Deceased’s assets at the date of death’.

My father had private pension with L&G. Do I answer 'Yes' to this question?

Also Question 8 asks: 
Did the deceased change or dispose of their pension in the 2 years before they died? Ignore any pensions paid to a surviving spouse or civil partner

The money that was in my fathers pension pot (less than £30k) was paid to my mothers bank account. Do I answer No here?

tasticz

Additional queries:

Question 9.2 - Deceased’s share of joint assets passing automatically to the Box 9.2 £ surviving joint owner even if they are the husband, wife or civil partner.

Main residence - approximate price £460,000 - mortgage amount remaining at the time of death £140,000

Buy to let - approximate price £440,000 - mortgage amount remaining at the time of death £330,000

Do we need to include small small things like TV (10 year old), printer (10 year old), 1x laptop, etc.(resell value probably around £50), furnitures (sofas, chairs, desks - minimal value), etc.?

Edit: further query, if assets that are owned as joint tenants why does it need to be declared for IHT. Doesn't my mother automatically become the sole owner?

Question 10.1
Share of mortgage on a property owned as a joint asset and shown in box 9.2

As the properties were owned as Joint Tenants - Full remaining mortgage amount can be added, is this correct? i.e. £470,000

Question 11.2
Household and personal goods - How accurate do we need to be here? The main item really was the iphone X which was around £500. Do I need to price up all the clothes, furnitures, etc. Can I blindly put £2000?  Second hand items, all worthless really. Clothes to be donated to charity. Nothing designer/worth selling.


Question 11.11
Any other assets not included above, including, for example, refunds, Income Tax repayments and any lump sum or continuing payments from a pension scheme

Lump sum of less than £30k was made to my mother from my dads private pension, I was under the impression that private pensions were not taxable?

Keep_pedalling

tasticz said:

Hi All,
Finally coming around to filling in the IHT205 form even thought probate is not needed.

My father (under 60) passed away last year leaving everything to my mother. We have already sorted everything as nobody asked for probate documents (properties were in joint names) and minimal cash in bank / life insurance policy. 

Question 7 of the IHT 205 form asks: 
Did the deceased have any kind of pension arrangement other than the State Pension? Yes or No
If you answered ‘No’, go to the next section ‘Deceased’s assets at the date of death’.

My father had private pension with L&G. Do I answer 'Yes' to this question?

Also Question 8 asks: 
Did the deceased change or dispose of their pension in the 2 years before they died? Ignore any pensions paid to a surviving spouse or civil partner

The money that was in my fathers pension pot (less than £30k) was paid to my mothers bank account. Do I answer No here?

Q7 - Yes
Q8 - No

Keep_pedalling

tasticz said:

Additional queries:

Question 9.2 - Deceased’s share of joint assets passing automatically to the Box 9.2 £ surviving joint owner even if they are the husband, wife or civil partner.

Main residence - approximate price £460,000 - mortgage amount remaining at the time of death £140,000

Buy to let - approximate price £440,000 - mortgage amount remaining at the time of death £330,000

Do we need to include small small things like TV (10 year old), printer (10 year old), 1x laptop, etc.(resell value probably around £50), furnitures (sofas, chairs, desks - minimal value), etc.?

Question 10.1
Share of mortgage on a property owned as a joint asset and shown in box 9.2

As the properties were owned as Joint Tenants - Full remaining mortgage amount can be added, is this correct? i.e. £470,000

Question 11.2
Household and personal goods - How accurate do we need to be here? The main item really was the iphone X which was around £500. Do I need to price up all the clothes, furnitures, etc. Can I blindly put £2000?  Second hand items, all worthless really. Clothes to be donated to charity. Nothing designer/worth selling.


Question 11.11
Any other assets not included above, including, for example, refunds, Income Tax repayments and any lump sum or continuing payments from a pension scheme

Lump sum of less than £30k was made to my mother from my dads private pension, I was under the impression that private pensions were not taxable?

Q 9.2 - no those sort of things have fall under 11.2

Q 10.1 No half the value, the same as the the jointly owned houses.

Q I1.2 A nominal amount will surface and you don’t need to value lost of low value items.

Q 11.11 He was not drawing payments at the time of his death so there I’d nothing to add here. The payment of the lump sums does not form part of his estate.

tasticz

Thank you @Keep_pedalling

tasticz

@Keep_pedalling, Apologies, just want to dig a little deeper because your response to how to answer Q10.1 doesn't make sense as it increase the Net value of assets 

Example
Main residence Value - £460,000
Mortgage left - £140,000
Net - £320,000 - should this be reduced to half as per edit below?

Buy to let Value - £440,000
Mortgage left - £330,000
Net - £110,000 - should this be reduced to half as per edit below?

Total ownership in property = £430,000 - should this be reduced to half as per edit below?

Property owned as Joint tenants 

Question 9.2 says give whole value i.e. £460,000 + £440,000 = £900,000
Question 10.1 says share of mortgage on a property owned as a joint asset as shown in box 9.2

If I put half the amount of mortgage remaining i.e. (140,000+330,000)/2 = £235,000, The net value of assets increases to £665,000 in BOX C when in reality the net asset owned is only £430,000. Suddenly there is £235,000 increase

But if I put £470,000 (i.e. fully mortgage amount), the value in BOX C is £430,000 which is the same as what is actually there 'Net.'


Any further pointers? 

Edit: reading the question again, I think I put  full details in the white box. Say the deceased owned half of the property. So the value in box 9.2 will be half of the property value and the mortgage in 10.1 will also be half.

That seems to make sense to me...

as the question reads: Deceased’s share of joint assets passing automatically to the surviving joint owner even if they are the husband, wife or civil partner.