Any IHT due?

CaptainWales

Hi 
I have recently been made executor of a will, but not sure whether IHT is due. This is the situation:

Cash gifts left to various people and organisations totalling £325k, with remainder of estate to his late wife. There are 2 properties in the estate but not sure of value and both were held in his name only (at least 400k for both). I don't think IHT will be payable - could anybody confirm that's the case?

Also how soon after getting the death certificate can I apply for probate? There are still things that need paying from his account - eg tv licence before the end of the month. Should I pay these myself and then reimburse from the estate when I have access to his accounts? 

Many thanks - never been in this situation before. 

poppystar

Did his wife die after him? If not then the remainder to the late wife would surely fail. 

If the wife died first did she use her iht allowance? 

How did you arrive at no iht being payable? 

CaptainWales

The wife is still alive. Sorry if my first post didnt make that clear.

Keep_pedalling

No IHT as the £325k is covered by his NRB and the rest gets spousal exemption. If those organisations are charities or political parties then those are also exempt so do not use any of of his NRB which will leave some transferable to her estate.

CaptainWales

Great, thank you. Thats a relief.

Are you able to comment on my other Q in my first post?

poppystar

CaptainWales said:

The wife is still alive. Sorry if my first post didnt make that clear.

It was your use of the term ‘late wife’ that confused me. 🙂

Keep_pedalling

CaptainWales said:

Also how soon after getting the death certificate can I apply for probate? There are still things that need paying from his account - eg tv licence before the end of the month. Should I pay these myself and then reimburse from the estate when I have access to his accounts? 

Many thanks - never been in this situation before. 

If their is no IHT return to do then you can apply straight away. His bank should be informed of his death and all sole accounts frozen. Utilities and other expenses related to his home are now the responsibility of his wife, so you need to inform any organisation that he was paying of his death and new accounts set up using her bank accounts.

CaptainWales

Sorry poppystar - my brain isn't working properly atm! 

Presumably I still have to wait for grant of probate before notifying banks? Process seems like it will take weeks to sort out. 

Also do I need to pay the probate fee myself and then reimburse myself from the estate when I have access to those accounts. 

msb1234

Out of interest, why would you need to pay his TV licence? Just tell them he’s died. Also, you should inform his bank and the accounts will be frozen. You can’t use the money in his accounts just like that.

msb1234

I meant to say you need to notify the banks now, not after probate. 

Savvy_Sue

CaptainWales said:

Presumably I still have to wait for grant of probate before notifying banks? Process seems like it will take weeks to sort out. 

No, absolutely not, you should tell the bank as soon as you can: they'll be quite used to this. They will then freeze the account and prepare a statement of the final balance for you. 

Was it a joint account with his wife? If it was, then generally his name will be removed from the account, and all the money in it will be regarded as hers. 

If he didn't have any joint accounts, what are the plans for the wife to pay bills going forward? See Keep_pedalling's post above this. 

CaptainWales said:

Also do I need to pay the probate fee myself and then reimburse myself from the estate when I have access to those accounts. 

I suspect you do. The bank will pay a funeral bill if it is presented to them, even if the account has been closed. I am not sure the same is true for the bill for applying for probate.