Over valued estate for probate

malay39

My wife and I were tenants in common of our house.  We had trust wills , and on first death half share of our home would go into a trust for the benefit of our children. I understand that the value of her property that goes into a trust should not be included in the value of her estate for inheritance tax and probate. I applied for probate and it was granted with no tax to pay. I had wrongly included the value of her share in the probate/inheritance tax forms. How can this be corrected so that  on my death, my executors will have another £250,000 tax free allowance, which is the value of my wife's share of our home stated in the inheritance tax/probate submission.

Keep_pedalling

It should not make much difference, the value of her share does not form part of her estate for probate purposes but it does for IHT purposes even though it is covered by spousal exemption because although the trust is the legal owner you are the beneficial owner. On your death the whole value of the house forms part of your estate but your executors can use her full transferable NRB (unless there were other bequests that used some of it up) and if necessary her transferable residential NRB as well.