Inheritance Tax forms

CommuterRevenge

My mother died last year, and I recently received the Letters of Administration (no will) after applying myself. Sadly my mother in law also died recently. I have been asked to help with the Probate. The process is a little different because of the Will and it being after Jan 1st 2022 so I wonder can I ask for help on a couple of points.

My father in law passed away in 2013, but we cannot find a complete copy of the will (the online  Will record does not list all of it and has no record of the actual values used) However it was stated that there was no Inheritance Tax to pay and none was. c30k cash went to the children the rest went to my mother in law. The house was sold a year and half later for £377k. I'm slightly concerned that the value was a little low despite repairs needed
MY main question is around IHT 216 and unused tax allowance. Is the unused aspect literally the unused amount ie the total value of the father in law estate was probably approx £320k, then £5k is allowed or is it the case none was used as the entire estate passed to a spouse and the full £325k passes to my mother in law meaning £650k allowance
3 children will inherit her flat she bought later £165k now worth c£200k, and £23k cash gift to within 7 years from a bond maturity, remained of cash from the sale of the house, total estate approx £445k.  

The second question is the need to complete all the IHT forms and qualifying as an excepted estate. As we cannot find the entirety of the will we won't be able to complete the IHT216.  We were going to have to use the residence nil rate band allowance of £500k to direct descendants and does that automatically preclude being classed as an excepted estate?
I Further, the fact we have to complete IHT403 for the cash gift within 7 years mean we have to go down the IHT400 route?
Thanks in advance, and apologies if anything is not clear.

Keep_pedalling

9.23% of his NRB were used so the available transferable NRB is reduced by the same percentage. As the rate has not changed since FIL died you MILs estate has £295 of FILs estate to transfer making a total of £620k, which is well over the value of the estate.

As there is no IHT to pay and you don’t need to claim any transferable residential NRB, there is no longer any need to fill in any IHT forms just the probate forms. For deaths occurring after 31 Dec 2021 all the IHT 200 series forms have become obsolete, 

CommuterRevenge

Keep_pedalling said:

9.23% of his NRB were used so the available transferable NRB is reduced by the same percentage. As the rate has not changed since FIL died you MILs estate has £295 of FILs estate to transfer making a total of £620k, which is well over the value of the estate.

As there is no IHT to pay and you don’t need to claim any transferable residential NRB, there is no longer any need to fill in any IHT forms just the probate forms. For deaths occurring after 31 Dec 2021 all the IHT 200 series forms have become obsolete, 

Thanks very much. 
May I summarise and doble check?
So, basically, we'd have to fill in IHT403/405/406/409*/419/435 & 421 but because the net of all those is fairly comfortably under £500k incl descendants RNRB we only have to complete PA1P?

*I didn't mention a part of my FIL pension passed to my MIL, but that ended when she passed away.

shiraz99

Can I suggest you use the online IHT checker on the gov.uk site - https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value

Just put in the unused inherited portion of your FIL's NRB (£325K minus the amount he gave to children) where asked along with the your MIL's full amount of £325,000 and go from there. If what you're describing is correct it will come back as an excepted estate with no IHT to pay and then you can go on and complete the online Probate application form.

CommuterRevenge

shiraz99 said:

Can I suggest you use the online IHT checker on the gov.uk site - https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value

Just put in the unused inherited portion of your FIL's NRB (£325K minus the amount he gave to children) where asked along with the your MIL's full amount of £325,000 and go from there. If what you're describing is correct it will come back as an excepted estate with no IHT to pay and then you can go on and complete the online Probate application form.

 Yes, that said nothing to pay. Thanks again.