Probate and IHT advice

SlabHead17

Hi,

I am looking for some advice on probate and inheritance tax in England. 

My Dad passed away recently without a will, leaving wife and 3 children. I am looking to sort out his estate and I am unsure whether IHT will need to be paid or not and which forms will need to be completed. The estate includes the family home which is owned solely by my Dad, worth around 200k and he had stocks and shares ISA with around 160k. 

Many Thanks

Flugelhorn

I am sorry to hear of your loss. 

Looking at the government website it states:

"There’s normally no Inheritance Tax to pay if either:

• the value of your estate is below the £325,000 threshold
• you leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club"

In intestacy you mother according to this site  https://www.gov.uk/inherits-someone-dies-without-will/y/england-and-wales will get £270K + life interest in the remainder 

"

If the estate is worth over £270,000

The estate will be divided between the husband, wife or civil partner and the children of the deceased.

The husband, wife or civil partner gets:

• up to £270,000 in assets, and half of the rest of the estate
• all of the personal possessions of the deceased

The children of the deceased are entitled to a share of the half of the estate above £270,000."

Keep_pedalling

Flugelhorn said:

I am sorry to hear of your loss. 

Looking at the government website it states:

"There’s normally no Inheritance Tax to pay if either:

• the value of your estate is below the £325,000 threshold
• you leave everything above the £325,000 threshold to your spouse, civil partner, a charity or a community amateur sports club"

In intestacy you mother according to this site  https://www.gov.uk/inherits-someone-dies-without-will/y/england-and-wales will get £270K + life interest in the remainder 

"

If the estate is worth over £270,000

The estate will be divided between the husband, wife or civil partner and the children of the deceased.

The husband, wife or civil partner gets:

• up to £270,000 in assets, and half of the rest of the estate
• all of the personal possessions of the deceased

The children of the deceased are entitled to a share of the half of the estate above £270,000."

Although if your mother needs the money for her long term security and all the children agree you can make a deed of variation so that she gets it all. Not that it matters in this case but anything passing to a spouse is exempt from IHT regardless of amount.

SlabHead17

Thank you both. Does that mean I will not have to fill out the IHT400 as no tax will be due?

Keep_pedalling

SlabHead17 said:

Thank you both. Does that mean I will not have to fill out the IHT400 as no tax will be due?

As long as you don’t have to claim the residential NRB then no IHT retrenched is required. Claiming either RNRB requires a return even if no tax is due

buddy9

IHT400 is not required because this is an excepted estate.

This is an excepted estate because the NQV net qualifying value is under £325K

NQV (in this case) = net value of estate for IHT minus amount exempt because passing to spouse