Process for probate with IHT payable

msb1234

I am supporting a friend whose parent recently passed away. They are the Executor and sole beneficiary. The estate will exceed the £500k ceiling for IHT by a relatively small amount, plus there is some life insurance payable that I believe is outside of the estate.
Can someone please list the order we need to complete the relevant paperwork when applying for probate? I have completed probate forms several times but all for estates well below the IHT levels. Fortunately there will be enough cash to pay the IHT bill from the insurance payout so there’s no absolute rush to sell the property to release funds.
In addition, can anyone point me in the direction of a decent spreadsheet to keep account records? I used a simple Excel one I created myself but think I need something rather more detailed.

badmemory

To be honest I don't see why something more complicated would be needed.  It is all about a+b+c-d= what may be taxable & maybe not depending on the previous marital status of the parent.  Just bear in mind all income less any expenditure that should be paid by the estate.  Keep it simple & it is less likely to lead to mistakes.  Just make sure that any expenditure that can legitimately be paid by the estate should be, like the funeral & I believe costs of the property before sale.

Keep_pedalling

Just checking, are we correct in assuming the deceased was not widowed?

RAS

And did the insurance pay out to the estate or to the beneficiary? If not the latter, was there a reason?

Runner_Duck

msb1234 said:

In addition, can anyone point me in the direction of a decent spreadsheet to keep account records? 

Excel has a template called Statement of Account that would probably work for you.

seaforest

Keep_pedalling said:

Just checking, are we correct in assuming the deceased was not widowed?

I assume this would be important as if their parent had been in a marriage or civil partnership with someone who died previously they will likely be able to use their nil rate band too , or some percentage of it.
(See gov uk guidance for transferring unused basic threshold for inheritance tax)
This goes for the residence nil rate band too.

msb1234

The parent was a single parent - never been married so no transfer of IHT exemptions.
Having looked through the IHT400 it’s a bit confusing as to what insurance is classed as falling outside the estate - there are 4 different pensions but all through the same provider! 

Does a Death in service payment fall outside the estate?