Is a Joint Tenant Property included when adding up assets to work out if estate is "Excepted"

greywoman

Hi,

Newbie here, hope my question makes sense!

I am applying for probate for a relative.

I am trying to understand whether their estate is excepted or not.

It all depends on if the family home held as Joint Tenants is included.

The gentleman who died owned his house with his wife and the house is likely to be worth around £1million (so his half would be £500K). His wife survives him.

His investments/other assets (yet to be valued) may be as much as £500K.

Do I add his half of the house to the other assets to work out the "Gross value of the estate". I have noted that if the gross estate is more than £1 million then the Estate is not Excepted?

The death was in 2021 (I know the rules for what is an excepted estate have changed since).

Thank you for any help you can give me.

Keep_pedalling

Was everything left to his wife? If it was then it is an excepted estate as it is under £3M.

https://www.gov.uk/valuing-estate-of-someone-who-died/check-type-of-estate#:~:text=What%20counts%20as%20an%20excepted,civil%20partner%20who%20died%20first

For IHT purposes 50% of the house is part of his gross estate but in this case is covered by spousal exemption. 

greywoman

Thanks for your reply. The majority (apart from £50K cash and £50K shares left to his son) - however as the death was in 2021 I believe the estate has to be less than £1million rather than £3 million to be excepted.  Unless I have that wrong?  On the government website it indicates a different set of rules if the death was before the end of 2021 (which it was).

Keep_pedalling

greywoman said:

Thanks for your reply. The majority (apart from £50K cash and £50K shares left to his son) - however as the death was in 2021 I believe the estate has to be less than £1million rather than £3 million to be excepted.  Unless I have that wrong?  On the government website it indicates a different set of rules if the death was before the end of 2021 (which it was).

Yes, sorry you are correct, however the value of his investments and the house needs to based on the value at the time of death you may squeak in at under £1M market. 

greywoman

OK thanks yes - so the house does need to be included, thank you.