Online Probate queries
I am in the process of applying for probate for my aunty and found this forum and the responses from contributors absolutely invaluable.
It is a straightforward application but I have some queries regarding the five sets of figures required using the online probate application.
1 Gross Value for IHT
2 Net Value for IHT
3 Net Qualifying Value for IHT
4 Gross Value for Probate
5 Net Value for Probate
To set the scene:
Aunty died recently so the 2022 changes to probate rules apply
Her husband died the previous year and everything left to her
Whole Estate simply made up of house+cash+car
Example Values below which Total £705k
There was £45k gifted in last 7 years
Debts of £1300
House goes to direct descendants so Residential NRB applies
Aunty inherits uncles IHT NRB allowance
My questions are:
I assume the allowance are 2 x £325k NRB and 2 x RNRB £175k = £1m
Do I fill in the five fields above as follows:
1 Gross Value for IHT £705k estate +£45k gifts = £750k
2 Net Value for IHT =£748.7k (gross less £1300 debts)
3 Net Qualifying Value for IHT =£0 (as all covered by NRB and RNRB)
4 Gross Value for Probate =£705k (total less £45k gifts)
5 Net Value for Probate =£703.7k (gross less debts)
I would be very grateful for confirmation and any other tips and guidance that may apply.
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You say No exemptions therefore (NQV) Net Qualifying Value for IHT would be the same as the Net Value for IHT
AIUI the net value should take funeral costs into account.
Also, if you tick NO to the question "Did you complete IHT forms to report the estates value", I didn't think you need any IHT forms regardless if you want to use the RNRB
And on this basis, the £325k available to my Aunty would be taken off by HMRC?
You are confusing estate values with allowances.
The net qualifying value for IHT is the value of the estate for IHT purposes less liabilities less the amount of estate which is exempt from IHT because it passes to a spouse, civil partner or charity. In this case none of the estate passes to a spouse - the spouse predeceased.
NQV is used, among other things, to determine whether an estate is an excepted estate for IHT purposes. An excepted estate is one where an IHT account does not need to be submitted to HMRC.
On the other hand - NRB, TNRB, RNRB and TRNRB are allowances which are used to determine the amount of IHT which is payable on an estate.
I think I have come to the conclusion that I won’t be able to submit the request for probate online as it requires supporting forms for RNRB TRNRB namely IHT435/5 and I assume that would also mean IHT400