Probate advice

Iannz

Am I on the right track? I am an executor for my mum’s will. She died in January 2024 and has left a house worth approx £420,000 and a few small household goods to her children . I don’t think there is inheritance tax to pay (personal
allowance of £325,000 and residence nil
rate band of £175,000) but I still need to complete an IHT400 form, an IHT435 for the residence nil rate band and an IHT405 for the house valuation? There seems to be a difference of opinion of whether the house valuation should be
an online search, a real estate appraisal or a formal valuation. I feel like I am getting tied up in knots!! 😂

Rhubarbium

Sounds to me as if you’re pointing in the right direction. In terms of a valuation make sure it’s a number you can justify. Do an online search I’d probably ok if the house is in an area of similar properties with a few being sold recently. Otherwise I’d go with the local estate agents figures. If the overall estate value is below the IHT limit you’ve nothing to loose by giving a slightly higher value for the house.

Keep_pedalling

Was she a widow? If she was and inherited her husband's estate you would be better off claiming his transferable NRB rather than the RNRB, as that avoids the need to complete an IHT return. Which ever way you do it, you are well below IHT territory, so I would get 3 estate agent valuations and go with the highest to minimise the risk of a CGT liability when it is actually sold.