Probate - A little help re the Forms

Twosides

Hi Folk, newbie but pretty much have my head a little around the Probate process.
My dad passed away 3 months ago.  He had a few quid in a couple of saving accounts and his house that he owned in total outright.
No land etc or anything else.  Owed no money to anyone.
So i have done the IHT forms for (yet to submit etc) Bank accounts and savings, Shares (only had a few so easy), House contents (low value stuff, white goods and a TV bed and wardrobe).  
House worth less than £200k and monies total less than £200k also.
The bit I find hard to understand is that I have used all the 'supporting forms' to work out what he has and their respective totals and so on.
I have read and re read on the gov web site that my dads Estate will not be subject to IHT due to the fact he can pass his house on to a direct descendant and thus not qualify for IHT.
But the IHT form suggests that his Estate is liable for IHT.
I am not sure where it is going wrong.  I will add that I am not sure where or if the fact that I am a direct descendant is being factored in to the 'form filling' process.
He has a Will and I am sole beneficiary.
So....all should (famous last words) be fairly straight forward.
How or where do I check in the forms that the fact I am a direct descendant has been taken into account.

Is it likely that HMRC want the tax paid whatever and then refund it when the IHT400 has been processed by them?

Thank you for your help and advice in advance.
Cheers

poppystar

So you have completed IHT435? 

Twosides

Hi. Yes I have. I thought this would assist / select / solve the issue but its as though I got it wrong. My fathers existence was simple compared to some.  Am I correct in assuming that his estate ought to be IHT exempt?  Or am I wrong.
Cheers for your response.

poppystar

It certainly sounds like it. There should be his £325k plus £175k RNRB. What did IHT325 show as the allowable RNRB once you had input the figures? 

Are you doing it online or using the paper forms? 

Twosides

Hi Poppystar,
Again thanks for reply.   I used the downloadable PDF.
So here is what I filled in on the form IHT435...
Q1) Does any of the Estates pass to children or direct descendants.... YES
Q2) Whats the total value of the Estate before deducting any reliefs or exemp'.....in this box I have put the total of his savings etc added to the value of his property.  (Is this correct?)
Q3) Whats the amount of the total chargeable estate on death.....in this box I put exactly the same value as in the above ques 2
Q4) Does the Estate include any residential property that the deceased owned and lived in?......I answered YES
Q5) Whats the address.... self explan.
Q6) Whats the value of the residence at date of death?..... inserted the value of the property (approx 50% of the overall total give or take a tad)
Q7) What percentage of the residence passes to direct descendants....?  inserted 100%
Q8) Please state the name of the descendants...?   self explan. etc.
Q9) s any part of the residence exempt from inheritance tax, or does any part of it qual for any relief on the death?   inserted NO
skipped to Q13 as per form suggested.
Q13) Do you wish to transfer any unused residence nil rate band (TRNRB) from the estate of a pre deceased spouse or partner....?   input NO
skipped to Q15 as per the form suggested
Q15)  Are you claiming any downsizing allowance?.... answer NO
skip to Q 25
Q25) f you have used completed the RNRB calc, enter the available RNRB here....... I input £175,000

Sorry for long post.!

Hope this helps.  I'm sure the mistake is simple.
Thanks again for your help.

poppystar

This looks ok. Re q2 - you transferred the figures as required from the forms the note indicates? If so, that shouldn’t be the problem. 

Going back to your original post post when you say the iht form  “suggests the estate is liable for iht” where is this coming from? Could you have misinterpreted this? Where are you picking up that suggestion? Maybe that is the best place to start to try to unravel this - as you say it is probably a simple thing somewhere.

Twosides

Hi.
I think I got the fact it was liable from the online tool/checker.  So have I miss filled something there I wonder.?
I suppose what would be great for me to use would be a sample form that represents my scenario. My kids at school use the term WAGOLL....what a good one looks like!
Still not sure where its gone pear shaped for me tho!!
Thanks again.

Poundcat

My sympathies, OP.  I am about 3 weeks ahead of you in the process.  I have probably filled in similar forms.  Have you used form IHT400?
Your Father's estate will fall below the THRESHOLD for IHT, but you still need to send them all the forms.  That's what the online tool/checker is on about.

There is an online calculator for the Residence Nil rate Band (but £175,000 is almost certainly correct in your situation).  That is only claimable if  a share of the house is left to the children.

The Estate therefore has (£175k + £325k = £500k allowances).

I just filled in the "Simple Inheritance Tax calculation" on page 12 to make it crystal clear to whoever reads the forms.

BTW Was your father widowed (did your mother leave a lot of her estate to him)?  If so, you might also be able to get some "Transferable nil rate band".  This is form 402 (it takes into account what percentage of the estate went to the widow).

Good luck

Twosides

Thanks for response. I am using IHT400.

 I am using the paper based/download able pdf forms to get all info together and then do what I can re completion / submission on line.

My father lived alone, and I am the only beneficiary as his son.

I am going to re visit some of the forms tonight and in particular page 12 of IHT400.

Thanks again.