Online Probate queries 5 January at 7:01PM in Deaths, funerals & probate 14 replies 767 views

just919view

Hi

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

House £335k

Cash £350k

Car £20k

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. 

Thanks

buddy9

No exemptions therefore NQV should also be £748.7K  ?

just919view

Thanks for your reply

You say No exemptions therefore (NQV) Net Qualifying Value for IHT would be the same as the Net Value for IHT

Where would Probate or HMRC understand that 2 x £325k NRB and 2 x RNRB £175k = £1m covers it?

poppystar

just919view said:

Thanks for your reply

You say No exemptions therefore (NQV) Net Qualifying Value for IHT would be the same as the Net Value for IHT

Where would Probate or HMRC understand that 2 x £325k NRB and 2 x RNRB £175k = £1m covers it?

They would see it on the IHT400 and 435/436 forms etc you would need to complete to get the RNRB

JGB1955

Can you claim £350k RNRB if the house is only worth £335k?

AIUI the net value should take funeral costs into account.

just919view

I am aware you can only claim RNRB to the value of the house, up to a maximum of what is available from the 2 x £175k

I am still not clear regarding the figure that goes into Net Qualifying Value for IHT

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

poppystar

just919view said:

I am still not clear regarding the figure that goes into Net Qualifying Value for IHT

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

AIUI you still need to complete IHT forms if you want to claim RNRB and transferred RNRB so will have to answer YES to that question and complete IHT400 forms

buddy9

just919view said:

I am still not clear regarding the figure that goes into Net Qualifying Value for IHT

The net qualifying value for IHT is the net value of the estate for IHT less the total value transferred on that person’s death by a spouse, civil partner or charity transfer.

just919view

So in my example at the top of the thread - it would be £748.7 less £325.0 (transferred from my uncle) = £423.7k

And on this basis, the £325k available to my Aunty would be taken off by HMRC?

Thanks

buddy9

just919view said:

So in my example at the top of the thread - it would be £748.7 less £325.0 (transferred from my uncle) = £423.7k

And on this basis, the £325k available to my Aunty would be taken off by HMRC?

Thanks

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.

just919view

Thanks you are really topping my understanding for which I am very grateful

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