We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

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

GoogleMeNow
GoogleMeNow Posts: 364 Forumite
Third Anniversary 100 Posts Name Dropper Photogenic
edited 24 January 2024 pm31 4:43PM in Deaths, funerals & probate
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.


Comments

  • polar_pig
    polar_pig Posts: 86 Forumite
    10 Posts First Anniversary Name Dropper Photogenic
    edited 25 January 2024 am31 1:53AM
    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!


    Polar Pigs live in pigloos.....
  • Thank you for responding and for the helpful link, @polar_pig

  • 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?!
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.3K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 240.9K Work, Benefits & Business
  • 617.2K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.