probate, iht, allowances etc

Helpmeouthere

Morning all

Just wanted to check some details....

Mum passed away leaving property worth about 750000 and savings worth about 225000. Total estate about 975000. She has 325k and 175k allowances for herself and Dad who passed away in 2006 (everything was in joint names) Total allowance 1million. so she is going to be close to the iht threshold, so the estate may be excepted not but not if the property sells for 800000.....do I need to fill IHT400..?

G

kuratowski

To claim the Residence Nil Rate Band, you always need to complete the IHT400.  Limit for an excepted estate is 650k.

Keep_pedalling

With an estate this size you should get a professional paid for valuation from a RICS surveyor which is less likely to be challenged by HMRC than free EA ones. If the house does sell for more than the valuation you will be looking a CGT liability rather than an IHT one so it is important not to undervalue the property.

Helpmeouthere

Thanks for the swift replies....

I will arrange for a survey, thats great advice, and just so i understand you correctly....

...the estate is not excepted, because i am claiming RNRB and Dads allowances, therefore I need to do Iht400 and all the associated forms.

..and my initial premise is correct that if the final value of the estate doesnt exceed 1m then no iht will be due.

Thanks...G

bobster2

Helpmeouthere said:

Thanks for the swift replies....

I will arrange for a survey, thats great advice, and just so i understand you correctly....

...the estate is not excepted, because i am claiming RNRB and Dads allowances, therefore I need to do Iht400 and all the associated forms.

..and my initial premise is correct that if the final value of the estate doesnt exceed 1m then no iht will be due.

Thanks...G

Don't forget gifts. Gifts in the 7 years prior to death could mean the value of the estate for IHT might exceed £1m

Helpmeouthere

No gifts involved here...