Help progressing probate

longwalks1

He wasn’t a widower but we can use the RNRB of £175k for primary residence, add it to the £325k for IHT  to give a total allowance of £500,000 as he was technically a single, non widowed person who passed away? 

Even if (and it’s a big if) the house sold for £375k (it wouldn’t) then it’d still be well below the new total allowance of £500k

Keep_pedalling

longwalks1 said:

He wasn’t a widower but we can use the RNRB of £175k for primary residence, add it to the £325k for IHT  to give a total allowance of £500,000 as he was technically a single, non widowed person who passed away? 

Even if (and it’s a big if) the house sold for £375k (it wouldn’t) then it’d still be well below the new total allowance of £500k

To claim the RNRB you have to do a full IHT return even if there is no IHT to pay. Normally when you are well under the combined NRBs it is advisable to over estimate the value of the house to avoid a CGT liability. Being on the border line makes that approach a bit more tricky. 

If the valuation is £325k and it sells for £350k then you can’t retrospectively submit an IHT return and CGT will need to be paid on the £25k gain. The safest approach may be to submit an IHT return now with a slightly higher valuation to avoid the possibility of having to pay CGT, although this will add delays to the process.

longwalks1

thank you again keep_pedalling.  We’ve already submitted probate/letters of administration with a copy of the EA £325,000 house valuation, was thinking of getting it revalued for £350k and submitting that with full IHT400 but then won’t HMCTS question the new house valuation? 

We thought we’d have probate/LoA granted by now but they emailed back saying the figures submitted are above the excepted estate limit, and if there are no spousal or charity exemptions, then a full IHT400 is required 

Sorry for all the questions 

Keep_pedalling

longwalks1 said:

thank you again keep_pedalling.  We’ve already submitted probate/letters of administration with a copy of the EA £325,000 house valuation, was thinking of getting it revalued for £350k and submitting that with full IHT400 but then won’t HMCTS question the new house valuation? 

We thought we’d have probate/LoA granted by now but they emailed back saying the figures submitted are above the excepted estate limit, and if there are no spousal or charity exemptions, then a full IHT400 is required 

Sorry for all the questions 

I don’t think they will they have already asked you resubmit with new values and you are taking out the insurance payments. As long as HMRC are happy with it then there should be no problem. 

longwalks1

I’m sure when we filled out MIL probate last summer, the life insurance payout had to go on the form (IHT410 - life assurance and annuities), but didn’t count towards the estate total?