IHT Calculator and probate application

shiraz99

A quick question regarding the IHT calculator as part of the online probate application.

My dad's property is worth £360,000 in total but he and my mum had mirror wills with a life interest trust of 50% of the property, the usual thing. So in the first box regarding the property value do I just put his share in of £180,000 and then in the Assets held trust question I put £180,000 again with the total of £360,000 in the bit regarding the home left to the direct descendant(s)?

Also, even though they signed a declaration of becoming Tenants in Common, which I have along with the will it was never actually registered with anyone, as far as I'm aware, as the property itself remains unregistered with the Land Registry. Does this matter and will I need to send this as supporting documentation with the probate application?

RAS

Are you sure that the property has never been registered with the Land Registry? Do you have the deeds?

Or is it that the declaration regarding the tenancy in common has never been registered? As the Land Registry don't keep the such details.

There is a recent requirement to register life interest trusts with HMRC.

shiraz99

Yes, the property, purchased back in 1979 has never been registered, yes we have the deeds. The wills and change to Tenants in Common was made back in 2016.

Keep_pedalling

shiraz99 said:

A quick question regarding the IHT calculator as part of the online probate application.

My dad's property is worth £360,000 in total but he and my mum had mirror wills with a life interest trust of 50% of the property, the usual thing. So in the first box regarding the property value do I just put his share in of £180,000 and then in the Assets held trust question I put £180,000 again with the total of £360,000 in the bit regarding the home left to the direct descendant(s)?

Also, even though they signed a declaration of becoming Tenants in Common, which I have along with the will it was never actually registered with anyone, as far as I'm aware, as the property itself remains unregistered with the Land Registry. Does this matter and will I need to send this as supporting documentation with the probate application?

No, you don’t include your mother’s share of the house under other assets. Any sole assets or his share of any other assets such as joint bank accounts goes there.

shiraz99

Keep_pedalling said:

shiraz99 said:

A quick question regarding the IHT calculator as part of the online probate application.

My dad's property is worth £360,000 in total but he and my mum had mirror wills with a life interest trust of 50% of the property, the usual thing. So in the first box regarding the property value do I just put his share in of £180,000 and then in the Assets held trust question I put £180,000 again with the total of £360,000 in the bit regarding the home left to the direct descendant(s)?

Also, even though they signed a declaration of becoming Tenants in Common, which I have along with the will it was never actually registered with anyone, as far as I'm aware, as the property itself remains unregistered with the Land Registry. Does this matter and will I need to send this as supporting documentation with the probate application?

No, you don’t include your mother’s share of the house under other assets. Any sole assets or his share of any other assets such as joint bank accounts goes there.

I'm not sure that's what I suggested.

To be clear, using the online IHT checker found here How to value an estate for Inheritance Tax and report its value: Estimate the estate’s value - GOV.UK (www.gov.uk) is the following correct?

What was the total value in pounds of all property owned in the UK? £180,000 (or should it be £360,000)*
...
What was the value in pounds of the home left to direct descendants? £360,000
...
What was the value in pounds of any assets held in trust that they were able to benefit from? £180,000*

*This is the bit I'm confused with. Should I just include my dad's 50% share in the first box, and my mum's 50% as the life interesr trust or should the first box by the full total of £360,000 and the other box regarding trusts be zero?

Keep_pedalling

Just to clarify is your mother still alive?

shiraz99

Keep_pedalling said:

Just to clarify is your mother still alive?

Sorry, I should've made this clear from the outset, mum passed away 3 years ago.

shiraz99

I doesn't seem to make a difference with the IHT calculator whether I put the full value of the property in question 1 or just my dad's 50% share and my late mum's share in the value of assets of any trusts, the Gross, Net and qualifying figures come out the same for IHT.

However what do I put in as the Gross value of the estate for probate? The guidance suggests that you take the gross value for IHT and subtract, among other things, "assets held in trust". So for example, if the Gross estate value for IHT comes out at £400K do I then subtract 50% of the property value to take into account the life interest trust?

shiraz99

Apologies to bump this up but I was hoping to get an answer.

Although I have to aggregate the property value for IHT purposes and report the the total value for Gross value for IHT, do I subtract 50% of the property value when I report the Gross value for Probate, and if doing so does this mean I will have to arrange a second grant of probate for my late mum's share of the property?