IHT and 7 Year Gift Rule

Keep_pedalling

The value for probate is £525k but For IHT purposes the estate is £825k, but under the downsizing rule you can still claim his residential NRB and the transferable RNRB from your mother’s estate. So (assuming the house was worth at least £350k you have the full £1M of exemptions available.

You can’t apply for probate until 20 working days after you have submitted a full IHT return, which means filling in IHT400 and all the necessary supplementary forms including IHT435 and 436.

kaMelo

Pucky89 said:

Estate £525,000 ( £315k was the sale of the 2nd house to help cover care home fees (after the family home was part gifted as part of the below gift)

Gift £300,000 split between me and my brother made in March 2019

Thanks again in advance for any help you can provide!

Cheers.

Where did your father live prior to moving into the care home?
The part in bold suggests he owned two homes and the house sold for £315,000 was not the one where he lived.

Keep_pedalling

kaMelo said:

Pucky89 said:

Estate £525,000 ( £315k was the sale of the 2nd house to help cover care home fees (after the family home was part gifted as part of the below gift)

Gift £300,000 split between me and my brother made in March 2019

Thanks again in advance for any help you can provide!

Cheers.

Where did your father live prior to moving into the care home?
The part in bold suggests he owned two homes and the house sold for £315,000 was not the one where he lived.

Would be useful to know how much of the family home he still owned after the gift as that may have an impact on the amount of RNRB was available. 

Pucky89

Keep_pedalling said:

The value for probate is £525k but For IHT purposes the estate is £825k, but under the downsizing rule you can still claim his residential NRB and the transferable RNRB from your mother’s estate. So (assuming the house was worth at least £350k you have the full £1M of exemptions available.

You can’t apply for probate until 20 working days after you have submitted a full IHT return, which means filling in IHT400 and all the necessary supplementary forms including IHT435 and 436.

Thanks for confirming we are on the right track, or close to it. 

Pucky89

kaMelo said:

Pucky89 said:

Estate £525,000 ( £315k was the sale of the 2nd house to help cover care home fees (after the family home was part gifted as part of the below gift)

Gift £300,000 split between me and my brother made in March 2019

Thanks again in advance for any help you can provide!

Cheers.

Where did your father live prior to moving into the care home?
The part in bold suggests he owned two homes and the house sold for £315,000 was not the one where he lived.

He lived in the house that was sold for 315k. He relocated for work in the UK so he bought a new house and then the gift of the original family home was made. 

Pucky89

Keep_pedalling said:

kaMelo said:

Pucky89 said:

Estate £525,000 ( £315k was the sale of the 2nd house to help cover care home fees (after the family home was part gifted as part of the below gift)

Gift £300,000 split between me and my brother made in March 2019

Thanks again in advance for any help you can provide!

Cheers.

Where did your father live prior to moving into the care home?
The part in bold suggests he owned two homes and the house sold for £315,000 was not the one where he lived.

Would be useful to know how much of the family home he still owned after the gift as that may have an impact on the amount of RNRB was available. 

He didn’t own any of the family home after the gift. I was able to use savings\mortgage to take the rest on.