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IHT/NRB/RNRB/unused. Any help much appreciated.

boyintheorangeboots
boyintheorangeboots Posts: 16 Forumite
10 Posts First Anniversary
edited 12 July 2023 pm31 3:41PM in Deaths, funerals & probate
Good afternoon
I'm just getting my head around IHT/probate. Would someone be able to help me with my figures please?

Mother sadly died recently. House value £550k Bank accounts, ISA's NSI savings total £186k. Everything being left to myself and sister.

NRB: £325k
RNRB: £175k

Amount liable for IHT: £236K?

But...
Father died 1989 without leaving a will but everything went to my mother. Can I claim her Unused NRB and RNRB and if so what amounts, given it was 1989? Would it be the same NRB and RNRB as now, so £500k? or I read somewhere the rate in 1989 was £118 for RNRB?

Therefore would (if any) IHT be due?

Very many thanks in advance. Any advice would be much appreciated.

Comments

  • Daniel54
    Daniel54 Posts: 836 Forumite
    Part of the Furniture 500 Posts Name Dropper
    edited 12 July 2023 pm31 4:03PM
    Usage of nil rate bands is always expressed as a percentage rather than a monetary amount.

    so it would appear your mother’s estate can utilise 100% of both sets of allowances at current value ie £1m in total

    This assumes your parents were married.
  • boyintheorangeboots
    boyintheorangeboots Posts: 16 Forumite
    10 Posts First Anniversary
    edited 12 July 2023 pm31 4:13PM
    Thank you. Yes, they were married.

    Would I need to apply for this before applying for probate so it's in place for calculations?

    I'll look at the form to see what information will be required. Memory from 1989 isn't great....
  • buddy9
    buddy9 Posts: 696 Forumite
    500 Posts Third Anniversary Name Dropper Photogenic
    Transferrable allowances will only be available if father was married to mother.
  • Keep_pedalling
    Keep_pedalling Posts: 19,295 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Thank you. Yes, they were married.

    Would I need to apply for this before applying for probate so it's in place for calculations?

    I'll look at the form to see what information will be required. Memory from 1989 isn't great....
    Even though there will be no IHT to pay, as you will be claiming one of the RNRB you will have to do a full IHT return before you apply for probate.  
  • boyintheorangeboots
    boyintheorangeboots Posts: 16 Forumite
    10 Posts First Anniversary
    edited 12 July 2023 pm31 4:45PM
    Thank you.

    Do I claim the unused NRB rather than the unused RNRB though as that would cover it (the amount "over" approx. £236k)? 
  • Keep_pedalling
    Keep_pedalling Posts: 19,295 Forumite
    Ninth Anniversary 10,000 Posts Name Dropper Photogenic
    Thank you.

    Do I claim the unused NRB rather than the unused RNRB though as that would cover it (the amount "over" approx. £236k)? 
    You will need to claim both NRBs and her RNRB to cover the total value of her estate.
  • Sorry for being dense....

    So, £500k covered with current claim allowance.

    Then unused transferred NRB's from my father of up to £325k?
  • Father died in 1989, so would it still be £325k and £175k or based on NRB figure in 1989 (think it was £118k). I understand it would be 100% claim, so 100% claim on £118k or £325k?

    Many thanks in advance
  • INOPSU
    INOPSU Posts: 9 Forumite
    Name Dropper First Post
    edited 16 October 2024 pm31 4:21PM
    Was this sorted. 

    Whent ime comes I will need to use my dads NRB re 1986 100% (£325k-Yes?) and using his TRNRB 100% (175K-yes?)   and mums allowances will produce £825k,  easy enough to cover her estate (525K).  But dad's would be classed as an excepted state as would mums.  So do you need to complete an IHT400 form.  Trying to work out which forms are approprobriate for which bit isnt easy.  IHT 217 or 402 and 205. They should produce a flow trree to make it easier.  

    Mine is hypothetical as mum is still with me. But my SJP advisor suggested pulling papers together. Just caused me unwanted stress.
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