Conflicting HMRC advice

Executor2025

Hi, I am a co-executor on my dad’s will and we struggling to confirm if we need to submit an IHT 400.

Dad’s estate includes:

- 50% share in the family home, owned as tenants in common with mum / his wife (his share was worth circa £275k)
- joint bank account with around £100k
- other possessions worth under £10k

Mum will have a life interest in the house and on her death this will pass to their children / us. The rest of the estate passes to mum. They have always lived in the UK.
 

From reading the IHT 400 guidance, I think that all the estate benefits from the spousal exemption so the IHT 400 isn’t required.

I have called the HMRC helpline twice to check but they have not given clear / consistent advice. The first person I spoke to said we need to complete IHT 400 because the estate is valued over £325k. The second person said that it might be exempt (but only when I pushed on this) but that I need independent legal advice from someone who has seen the will.

Mum and I would be very grateful for guidance on this. IHT 400 is a complicated form to complete so if we can go straight to probate that would be  much better! 

Thanks in advance!

Keep_pedalling

You are correct. This is an excepted estate and no IHT return required. You almost certainly don’t need probate either with only £10k in sole assets. 

Your mother becomes the beneficial owner of his share of the house, with legal ownership held in trust. The whole house forms part of her estate but none of your father’s NRB or RNRB is used up. 

The trust needs to be registered with HMRC within 2 years of his death. hope the £100k is not held in a current account earning no interest.

Executor2025

Keep_pedalling said:

You are correct. This is an excepted estate and no IHT return required. You almost certainly don’t need probate either with only £10k in sole assets. 

Your mother becomes the beneficial owner of his share of the house, with legal ownership held in trust. The whole house forms part of her estate but none of your father’s NRB or RNRB is used up. 

The trust needs to be registered with HMRC within 2 years of his death. hope the £100k is not held in a current account earning no interest.

This is very helpful, thanks for taking the time to reply.

Chris_Large

Having been through this with my own parents, I can confirm that Keep_pedalling is correct.