Online probate, simplified IHT, forms?

AandP

My Mum has recently died leaving an estate of roughly £500,000 including her house (approx. value of £450,000).

I will be attempting to do online probate but am confused with what I have read so far in regards to what forms I may need to complete beforehand.

My Dad died about 12 years ago and left everything to my Mum so am I right in thinking that his IHT allowance passed to my Mum which makes hers £650,000? Also, she is passing on her estate, including her house to her 2 children and 2 grand children (via her will) so the tax free allowance is a total of£650,000 + £175,000 equalling £825,000?

The only possible complication is that she gave approx. £30,000 in gifts to her 2 grandchildren within 7 years of her death.

Questions are:

Do I need a form to transfer my Dad’s allowance?

Do I need a form to apply my Mum’s £175,000 house allowance?

Do I need a form to inform of Mum's estate value before I apply for probate online?

Do I need a form to inform of Mum's £30,000 in gifts?

Or any other forms, or is this all done during the online probate application?

 IE the gov.uk states

“Excepted estates - if the person died on or after 1 January 2022

You only need to report the value of the estate if you’re applying for probate.”

 Does this happen as part of the online probate application or is it a separate form?

Thank you in advance for any help

Marcon

AandP said:

My Mum has recently died leaving an estate of roughly £500,000 including her house (approx. value of £450,000).

I will be attempting to do online probate but am confused with what I have read so far in regards to what forms I may need to complete beforehand.

My Dad died about 12 years ago and left everything to my Mum so am I right in thinking that his IHT allowance passed to my Mum which makes hers £650,000? Also, she is passing on her estate, including her house to her 2 children and 2 grand children (via her will) so the tax free allowance is a total of£650,000 + £175,000 equalling £825,000?

The only possible complication is that she gave approx. £30,000 in gifts to her 2 grandchildren within 7 years of her death.

Questions are:

Do I need a form to transfer my Dad’s allowance?

Do I need a form to apply my Mum’s £175,000 house allowance?

Do I need a form to inform of Mum's estate value before I apply for probate online?

Do I need a form to inform of Mum's £30,000 in gifts?

Or any other forms, or is this all done during the online probate application?

 IE the gov.uk states

“Excepted estates - if the person died on or after 1 January 2022

You only need to report the value of the estate if you’re applying for probate.”

 Does this happen as part of the online probate application or is it a separate form?

Thank you in advance for any help

More for the benefit of anyone else reading this thread (the total value of your mum's estate is already below the IHT threshold) - not only does your mum inherit your dad's unused £325,000 nil rate band, she also inherits his unused residence nil rate band, adding another £175,000 https://www.gov.uk/guidance/inheritance-tax-residence-nil-rate-band

Sarahspangles

In very similar circumstances, we just followed the steps in the Applying for Probate section of gov.uk.  As you complete sections it becomes clear which forms are needed next.  Even though it’s an Excepted estate, if you complete the online Inheritance Tax Checker it calculates figures you will need to input to apply for probate, the checker doesn’t get submitted but you can print it or save it as a file for future reference.

Keep_pedalling

Even with the gifts, her estate is below 2x NRB so there is no need to use either residential NRBs. The advantage of this is that you do not have to file an IHT return just the probate application form.

AandP

Thank you both very much.