Gross Value for Probate 26 September 2022 at 11:49AM in Deaths, funerals & probate 6 replies 241 views

Dilbert_Investor

sorry another question I’m hoping someone can help me with.

To recap, my mum has passed and leaves to everything to my dad.  They were married.

When completing the application for probate I know the IHT gross value includes her share of the jointly owned house and her share of joint bank account.

When reading the how to work out the gross value for probate further down it says ‘subtract the value of assets that were owned with someone else (joint assets) and that are being passed to the surviving owner’.

Does that mean I subtract her share of the house and joint account for the IHT figure (for the gross probate box) since these will automatically pass to dad as the surviving owner?

Many Thanks. 

shiraz99

Only include assets, such as bank accounts, investments etc, that are solely in your Mum's name, assuming they were both Joint Tenants, rather than Tenants in Common, there is no "share" per se of the property, don't include it in the estate value calculations.

I'd ask the question as to why you are being told you require probate in the first place, did your mum have banks accounts in her own name and are they of a value that's above the bank's threshold for probate, usually around £15K or more, depending on the bank.

Keep_pedalling

shiraz99 said:

Only include assets, such as bank accounts, investments etc, that are solely in your Mum's name, assuming they were both Joint Tenants, rather than Tenants in Common, there is no "share" per se of the property, don't include it in the estate value calculations.

I'd ask the question as to why you are being told you require probate in the first place, did your mum have banks accounts in her own name and are they of a value that's above the bank's threshold for probate, usually around £15K or more, depending on the bank.

I don’t think that is correct, the gross value should include 50% of any jointly held assets as those assets form part of the estate for IHT purposes even though they are not part of the inheritable estate.

Dilbert_Investor

Thanks.  I’ve included 50% in the gross IHT box.

But as I read it the Gross probate box seems to indicate not to include jointly held asset.

Marmaduke123

Dilbert_Investor said:

Thanks.  I’ve included 50% in the gross IHT box.

But as I read it the Gross probate box seems to indicate not to include jointly held asset.

Yes, I think you should only include assets held solely by the deceased here, such as savings accounts in your Mum's sole name.

Dilbert_Investor

Thanks Marmaduke - thats the way I have read the guidance.

Shiraz - wasnt planning on doing probate but the bank insist its needed.

shiraz99

Dilbert_Investor said:

Thanks Marmaduke - thats the way I have read the guidance.

Shiraz - wasnt planning on doing probate but the bank insist its needed.

But can you answer the question, which bank and what sort of values are we talking?