Inheritance Tax Help - IHT 404

Melvina92

Hi all,

I'm trying to complete the whole IHT400 form for my late father who passed in January 2024. He is survived by my mother and they were married.

I powering through the forms as best I can but keep hitting obstacles, with the most current one being form IHT404.

To add detail, there is no will so we are in intestate and everything was owned outright by my father.

The only joint asset was my parents joint bank account.

I am struggling with how to reflect this on IHT404.

In box 6, I have listed the details of the bank account but am confused by column E, the wording is throwing me as I initially thought the share would be 50% but the word 'income' is confusing me.

The value of the account is circa £20k, under that assumption I have filled out as follows:
A - bank details
B - name of my mother and her relation (spouse)
C - opening date of account
D - 100% contribution by my father
E - I have put 50% but the wording confuses me
F - circa £20K
G - circa £10K (based on my assumption in column E)

 I have therefore put £10K in the numbered box 6, would this be correct?

 My second question relates to box 9, presumably the money in the account goes to my mother but I am unsure how to fill this box in, the wording on exemption isn't clear to me.
 
Can anyone help please?

Keep_pedalling

First off we need to establish if an IHT return is required at all. The joint accounts are now 100% your mother’s and do not form part of his inheritable estate. Under intestacy rules the first £322k of the inheritable estate goes to your mother. Your mother also gets 50% of the remainder, the other 50% goes to his children.

Unless that 50% exceeds his nil rate band then this is an excepted estate and no IHT return is required.

If it is above this amount then an IHT return will need to be completed and IHT will need to be paid. There is however a get out here in that if his children agree they can make a deed of variation to pass more of his estate to their mother and keep the amount going to the children below his NRB.

The above is based on your parents residing in England or Wales.