Online Probate queries

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


«1

Comments

  • buddy9
    buddy9 Posts: 777 Forumite
    500 Posts Third Anniversary Name Dropper Photogenic
    No exemptions therefore NQV should also be £748.7K  ?
  • 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
    poppystar Posts: 1,577 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    edited 6 January 2023 at 4:25PM
    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
    JGB1955 Posts: 3,797 Forumite
    Sixth Anniversary 1,000 Posts Name Dropper
    edited 6 January 2023 at 4:48PM
    Can you claim £350k RNRB if the house is only worth £335k?

    AIUI the net value should take funeral costs into account.
    #2 Saving for Christmas 2024 - £1 a day challenge. £325 of £366
  • 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
    poppystar Posts: 1,577 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker


    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
    buddy9 Posts: 777 Forumite
    500 Posts Third Anniversary Name Dropper Photogenic

    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.
  • 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
    buddy9 Posts: 777 Forumite
    500 Posts Third Anniversary Name Dropper Photogenic
    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.

  • 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
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