Our Dads estate and IHT implications

Keep_pedalling

Claiming either of the RNRBs means you have to go down the IHT400 route, and it looks like you have listed all the supplementary forms require. As you are quite close to £1M you need to make sure everything is included. You don’t need to list every item in 407, often you can get away with a nominal sum for chattels. 

A couple of points, 1. taper relief does not apply in this case as the gifts did not exceed his NRB. 2. How have you valued the house? With an estate this size a RICS survey is better than the average from a number of estate agents.

Rodders2409

Thanks Keep Pedaling,

We've had a friend of the family who owns a pretty well respected local estate agents whose given us his written estimate, and he said it's not worth playing games with valuations for IHT. Do you mean that an RICS survey would probably be lower than an estate agents valuation, giving more head room, or just be more accurate in general?

With regards to the gifts, do i need to itemise each one over the 7 years?...and supply copies of bank statements etc?

IHT405....is that for his sole family home or to be used for any additional properties, which he doesn't have.?

Keep_pedalling

Rodders2409 said:

Thanks Keep Pedaling,

We've had a friend of the family who owns a pretty well respected local estate agents whose given us his written estimate, and he said it's not worth playing games with valuations for IHT. Do you mean that an RICS survey would probably be lower than an estate agents valuation, giving more head room, or just be more accurate in general?

No but a RICS valuation is les likely to be open to a challenge from HMRC..

With regards to the gifts, do i need to itemise each one over the 7 years?...and supply copies of bank statements etc?

You need to list them all but no need to supply copies of bank statements.

IHT405....is that for his sole family home or to be used for any additional properties, which he doesn't have.?

All properties.

Rodders2409

Cheers Keep Pedalling,

I'll start the process of completing the forms but I'm pretty sure I'll need to call them and ask questions because I've already seen some entries I don't quite understand. Hopefully they're willing to help?

Mothman

You might want to confirm regarding the Prudential bond. I am in the process of sorting my Mum's IHT and I have detailed her Prudence bond on the IHT410 (Life Assurance & Annuities schedule), as this seemed more appropriate.

Rodders2409

Thanks Mothman

I was going to use IHT411 for the Prudential Bond but you're right, the form IHT410 is more appropriate....that's saved me some hassle later...cheers!

The_Unready

Rodders2409 said:

Thanks all,

Sorry for the delay, I've had to sort dads stiff out and it's a bigger than I thought, physically.

Apologies for going off topic, but that has got to be the best Freudian slip of the day!

It made me laugh, anyway 😁

Rodders2409

The_Unready said:

Rodders2409 said:

Thanks all,

Sorry for the delay, I've had to sort dads stiff out and it's a bigger than I thought, physically.

Apologies for going off topic, but that has got to be the best Freudian slip of the day!

It made me laugh, anyway 😁

😅😁😊....Brilliant Unready...!!!!
Dad would have rolled around laughing....cheers for going off topic, it's raised a smile...

Rodders2409

Hello Moth man & All...

In fact I've started to fill in IHT410 form and it doesn't really work for dads Prudential Bond, I just need to double check.

My dad had a Prudential Bond which is described as follows..

The Prudential Investment Plan is an investment bond where you can invest your money in a range of different funds that aim to increase the value of your investment over the medium- to long-term, so 5 to 10 years or more.

The Investment Bond grew and he drew 4% each year to top up his pension. It's not a pension and its not an Annuity and it's not an Insurance policy, so IHT410 doesn't seem to be the right form for this asset.

As it's a wrapper 'product' for Equities I was originally going to use IHT411, is that correct?   

Mothman

Might be worth checkIng with the IHT helpline if in doubt. I have phoned the helpline once so far, I did have a 20 minute wait but they were quite helpful once I got through.
My Mum's Prudence bond was invested in their With-Profits fund and the policy had the 1% of life cover so I think IHT410 Life Assurance form is right for her bond, though I haven't submitted the forms yet so I could be wrong.