Can't work out if the estate is excepted or not

CalicoB

I have already sent in an application for Probate based on my assumption that the estate is excepted, but woke in the middle of the night wondering if I'd misunderstood and whether I should start drafting some forms before I wait for the response from the Probate office.

The estate I'm executing is as follows:
- deceased is an elderly widow, husband died in 2016. I don't have his will or details of his estate as she shredded it all after he died.
- all assets are in cash and over the £325k threshold
- she left half her residual estate to relatives and half to charity. By leaving half to charity, it brings the amount for IHT under the £325k threshold.

I had been assuming that because the charity legacy brings the amount that can be considered below the IHT threshold, the estate would be excepted. But reading the rules again I'm not sure this is the case and suspect they'll want full accounts.

So... does anyone else think I start drafting those IHT forms before waiting for the Probate office to tell me to do it?

Rodders53

Most likely husband will have left all his Estate to his wife...  If so then his nil rate band is available to make the total £650k.

DO search for Probate records in his name https://www.gov.uk/search-will-probate  you don't need exact dates etc.,. in case some of husband's nil rate band was used by bequests to others and thereby reduce the total available to the Widow's Estate.

CalicoB

There are no probate records for him. Because he died in 2016, I can't automatically transfer his nil rate band and have to fill in another form with all the details (what his estate was worth etc). I don't have those details as all the paperwork was shredded, so I can't make that application.

buddy9

On the basis of the information supplied, and provided that the charity transfers are to qualifying charities, then the Net Qualifying Value is less the £325,000 and this is therefore an excepted estate by virtue of Regulation 4(3) of the Inheritance Tax (Delivery of Accounts) (Excepted Estates) Regulations 2004.

Keep_pedalling

CalicoB said:

There are no probate records for him. Because he died in 2016, I can't automatically transfer his nil rate band and have to fill in another form with all the details (what his estate was worth etc). I don't have those details as all the paperwork was shredded, so I can't make that application.

You can automatically claim it, it is often the case that probate is not applied for with the first to die and it makes no difference to claiming it however long ago it happened.

In this case however you don’t need it as per buddy9’s post above.

CalicoB

That’s marvellous, thanks both.