Value of Estate for Inheritance Tax AND Probate - What's the difference?

GoogleMeNow

HMCTS require more information, following my online application for probate back in September 2023.

The probate is for my late mother and I believe her estate would be classed as an Excepted Estate.  My father pre-deceased her twenty years ago and everything went to my mother. 

The gross value of the estate (property and savings) amount to £575,000 with around £18,000 to be deducted for all the expenses I've had to pay since her death.  

I included the unused IHT allowance (£325,000) and added this to my mother's allowance of £325,000 to make a gross allowance of £650,000, so didn't need to complete the IHT400 form and the online application to HMCTS appeared to be straight forward.

HMCTS have now asked the following:

Please confirm the following :

Gross value of the estate for inheritance tax = £

Net value of the estate for inheritance tax = £

Net qualifying value of the estate = £

Gross value of the estate for probate = £

Net value of the estate for probate = £

Can someone please explain the difference between gross/net value of estate for inheritance tax and net qualifying value of estate and gross/net value of estate for probate???

Sorry if I am being thick.

Thanks in advance for any advice given.

polar_pig

The Gross, Net and Net qualifying value of the estate for IHT can be taken from the government calculator:

https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value

Using these figures from the calculator, then manually calculate the Gross and Net value for probate using this:

How to work out the gross value for probate

Work out the gross value of the estate for Inheritance Tax and then subtract the value of all of the following:

• assets that were owned with someone else (‘joint assets’) and that are being passed to the surviving owner
• gifts that were made in the 7 years before they died
• assets that were owned abroad (for example, overseas property or money in foreign bank accounts)
• assets held in a trust

How to work out the net value for probate

Subtract the value of any debts the person who died owed and the cost of the funeral from the gross value for probate.

Do not include debts that were owed jointly with someone else, for example, a mortgage on a joint property.

Taken from here:

https://www.gov.uk/applying-for-probate/before-you-apply

Not sure why they've not produced a single online calculator that would provide ALL the figures required!

GoogleMeNow

Thank you for responding and for the helpful link, @polar_pig

Colette51

I wish I’d come here first - I’ve been tying myself in knots trying to work out the values for probate - you’re right, why don’t they add those to the online calculator?!

V3cash

my husband and sister completed online form for probate recently and he is sure they added all the information required and worked out gross and net etc, his sister has had a similar email to you,
can I ask if you have now sorted it?
just realised this is a year old so probably yes 😛
im going today and I’ll use this information in this post to help them but my husband says he used the above information already, it’s hard as I wasn’t there but hopefully we can sort it