IHT - dates, forms and questions

BasilTheRat

Hi

Appreciate any responses

Our mum very sadly passed away recently and we are joint executors (myself and two siblings)

Mum's will is clear dividing everything she left in equal shares between the three of us.

She was divorced and owned her home outright. Her house valued at circa 250k and we estimate the rest of her estate may be worth 100k. This puts us over the 325k IHT threshold.

Now the questions...

1. As we are direct descendents inheriting all her estate, including the property valued at circa 250k, are we eligible for the additional 175k relief

2. If yes, do we still need to fill in IHT400 and send that, with relevant schedules, to HMRC before we are able to apply for probate

3. Is the date of her death, which obviously pre dates the impending budget next week, the relevant date for IHT purposes or is the date taken to be the date we send IHT400

4. Likelihood of any retrospective implementation of new IHT legislation following the budget or will the law as it stood when she passed apply 

Thanks so much in advance - mum's death was sudden but we know she wanted us to do all we could to protect her legacy for our children (indirectly through us) hence having concern over possible changes announced next week

Keep_pedalling

1 - Yes

2 - Yes

3 - Although the government could backdate the IHT rules it is highly unlikely they would do so. 

poppystar

1. Yes
2.  Yes - because you are claiming the residential nrb
3.  Date of death is the basis for all calculations of values
4.  Probably the latter but they could possibly do it retrospectively if they really wanted to.

BasilTheRat

Thanks both

Presumably, as the estate is going yo fall well below 500k threshold, we don't need to get an IHT repayment number for the front of the form before we submit it? Logic tells me yes but.... 

poppystar

No you don’t have to. 

buddy9

It is not an excepted estate therefore you will need an HMRC code to apply for probate. The most recent version of the IHT400 allows receipt by email.