meaning Net estate value for IHT: for the estate for inheritance tax on probate

mikeeread

Hi

We recently completed a probate application online.

They've come back asking for a lot of the figures again but haven't said why. So not sure if we've done something daft.

Looking at our lodged application, which is downloaded from their portal as check-your-answers.pdf

I don't understand the line/entry

"Net estate value for IHT: for the estate for inheritance tax in £ 7000"

The £7000 figure matches the funeral costs we entered but this might be a coincidence and is derived from other figures? As that doesn't seem to tally with the wording. Maybe we put the funeral costs in the wrong box  though we kept screenshots of the form as we went and I don't think there was a form field asking for this. But the final stage didn't allow you to capture the actual submission just what they process from your submission.

So what is "Net estate value for IHT: for the estate for inheritance tax" and how is it calculated. 



Thanks

Hoenir

The total assets less the total liabilities of the Estate net to £7,000. 

Does this appear to be correct? 

Keep_pedalling

If the net value of the estate is only £7000 I am surprised you need probate?

mikeeread

Thanks both, it looks like we've messed up or the form has. Though I'm pretty sure we didn't enter this explicitly. So not really sure what's happened. 

mikeeread

The next entry in our recorded file is 

"Net qualifying estate value for IHT: in £"

What the difference between the two? They seem very similar terms yet have vastly different values 

Keep_pedalling

Can you give us the actual gross value of the estate please?

mikeeread

Gross value is 334400

Keep_pedalling

mikeeread said:

Gross value is 334400

If the only debt was the funeral costs and the net value for IHT is £327400. 

mikeeread

Thanks, but I still don't see what the difference in meaning is between the two similar lines quoted above 🤷‍♂️.

i.e.

Net estate value for IHT: for the estate

for inheritance tax in £

Net qualifying estate value for IHT: in £

Can anyone provide the definitions of both 

When filling in the submission you don't enter these values just (in our case), savings, debts(funeral), valuables and gifts.

Keep_pedalling

The value for probate and IHT purposes may be the same or can be a long way apart as value for probate only includes inheritable assets.

Jointly owned assets that pass by survivorship are excluded from the probate value but included for IHT purposes. The same applies to non exempt gifts made during the 7 years.

mikeeread

Thanks again. Still don't understand and still don't understand how the calculated derived values seem to differ from our saved records of what we've entered.

Going to go through it all again and send outputs and see if that works