Insurance claim before or after probate?

Keep_pedalling

williamIV said:

So the insurance company does pay out to me , but only half amount is used for IHT purposes they said. As the policy was in our joint names? Probate not needed.

So to the original question, how does does this affect the IHT because if the insurance policy is claimed before probate/IHT, then the figures I use for the estate calculation changes.

I'm not sure how exactly, do I reduce the estate liability ( mortgage amount)? Or add the insurance payout (or 50% of it) to the estate valuation?

What is the approximate value of the house and the value of the rest of his estate? Does the insurance simply pay the outstanding mortgage.

williamIV

Keep_pedalling said:

williamIV said:

So the insurance company does pay out to me , but only half amount is used for IHT purposes they said. As the policy was in our joint names? Probate not needed.

So to the original question, how does does this affect the IHT because if the insurance policy is claimed before probate/IHT, then the figures I use for the estate calculation changes.

I'm not sure how exactly, do I reduce the estate liability ( mortgage amount)? Or add the insurance payout (or 50% of it) to the estate valuation?

What is the approximate value of the house and the value of the rest of his estate? Does the insurance simply pay the outstanding mortgage.

Approximately £450k and yes the insurance provides funds to pay off the outstanding mortgage balance. There's nothing else really as part of the estate.

Keep_pedalling

williamIV said:

Keep_pedalling said:

williamIV said:

So the insurance company does pay out to me , but only half amount is used for IHT purposes they said. As the policy was in our joint names? Probate not needed.

So to the original question, how does does this affect the IHT because if the insurance policy is claimed before probate/IHT, then the figures I use for the estate calculation changes.

I'm not sure how exactly, do I reduce the estate liability ( mortgage amount)? Or add the insurance payout (or 50% of it) to the estate valuation?

What is the approximate value of the house and the value of the rest of his estate? Does the insurance simply pay the outstanding mortgage.

Approximately £450k and yes the insurance provides funds to pay off the outstanding mortgage balance. There's nothing else really as part of the estate.

So the total estate will be no more than £225k well below the NRB even if the insurance is included.