Life interest in property

ProbateNewbie

Thank you @msb1234, that's as I thought re the jewellery.

Do you know what kind of value of jewellery I need to record? I know some of it was reasonably expensive.

Keep_pedalling

‘ProbateNewbie said:

Thank you @msb1234, that's as I thought re the jewellery.

Do you know what kind of value of jewellery I need to record? I know some of it was reasonably expensive.

Just use a nominal value for the lot. Even expensive stuff will have a pretty low second hand value unless we are talking about real top of the line collectible stuff.

ProbateNewbie

Thanks @Keep_pedalling. 

If StepF continues to refuse access to it, I am not even going to record an amount because if I have no proof of what's there, it's not going on the form.

Keep_pedalling

ProbateNewbie said:

Thanks @Keep_pedalling. 

If StepF continues to refuse access to it, I am not even going to record an amount because if I have no proof of what's there, it's not going on the form.

Personally I would still put a nominal value down just to show you had not missed chattels, £500 is a sum often used, but unless you are having to do an IHT return as well it is probable not that important. 

ProbateNewbie

@Keep_pedalling , good point about not missing chattels. I will do as you say and stick a nominal amount down. No IHT, thankfully.

Now, how to get the blasted jewellery, is the next thing to consider!

ProbateNewbie

So, interestingly, following a conversation with DWP, my Mum was entitled to a Winter Fuel Payment which I will receive shortly - I imagine this has to be included on the Probate form too? 

RnK136

ProbateNewbie said:

So, interestingly, following a conversation with DWP, my Mum was entitled to a Winter Fuel Payment which I will receive shortly - I imagine this has to be included on the Probate form too? 

  
There are no questions on the probate application about things like that, if I recall.

It asks about IHT and gross/net value for the estate, Net qualifying value and gross/net value for probate.

Did you do the IHT checker?

https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value#use-the-online-inheritance-tax-checker

ProbateNewbie

Hi @RnK136, 

I haven't done the IHT checker as I haven't got a value for the house yet but as it will only be her 50%, that's recorded, (is that right, or does the whole house value go on??) my hazy guess at house value plus her savings, won't exceed £325,000.00. 

I wondered if the Winter Fuel Payment should be added to her savings total? 🤔

RnK136

ProbateNewbie said:

Hi @RnK136, 

I haven't done the IHT checker as I haven't got a value for the house yet but as it will only be her 50%, that's recorded, (is that right, or does the whole house value go on??) my hazy guess at house value plus her savings, won't exceed £325,000.00. 

I wondered if the Winter Fuel Payment should be added to her savings total? 🤔

  
Yes, her 50% share, and I assume you must have a Note of Severance that the property was owned as Joint Tenants and not Tenants in Common otherwise the Will would not have been able to leave her share to anyone else without that.

The IHT checker gives good guidance as you go through it about what to include and what not to include, etc.

As she was entitled to the WFP on the date she died (although it wasn't actually paid at that point), I would include it in money in her bank, yes.

Valuing the assets

Start by listing the person’s assets - the things the person owned with a monetary value.

These may include:

• their home
• any other properties, buildings or land
• money in banks, building societies or ISAs or cash in their home
• stocks and shares
• household and personal items, including furniture, paintings and jewellery
• cars, caravans or boats
• foreign assets, such as property abroad
• money they’re owed, for example wages or refunds from household bills
• payments when they died, for example life insurance or a lump sum ‘death benefit’ from a pension

Then estimate the value of each on the date the person died.

Include all assets in your estimate. This includes any left to the person’s spouse, civil partner or a charity - you will not pay tax on these assets.

Keep_pedalling

ProbateNewbie said:

Hi @RnK136, 

I haven't done the IHT checker as I haven't got a value for the house yet but as it will only be her 50%, that's recorded, (is that right, or does the whole house value go on??) my hazy guess at house value plus her savings, won't exceed £325,000.00. 

I wondered if the Winter Fuel Payment should be added to her savings total? 🤔

Any assets covered by an immediate post death interest trust for a surviving spouse is covered by spousal exemption and therefore does not use any of her NRB so even if her estate goes over £325k it still won’t be subject to IHT and no IHT return will be required. 

I think the WF payment would be classed as a debt owed t9 the estate.