Low Value Excepted Estate and Transfer of Nil Rate Band

peternette

Hi,

I am hoping someone may assist.  My father has recently passed a way and the value of his  estate is larger in value than his nil rate band allowance, BUT once we take into account unused allowances (property and assets) from my mother who died 6 years ago, then it's clear no IHT will be payable.

My questions would be:
1) Can we simply proceed straight to Grant of Probate (online) by declaring as an Excepted Estate, or do we need to jump through hoops with HMRC to evidence this?
2) If we do need to engage HMRC, then will this warrant IHT400 completion?  And IHT 402?  And IHT 435 and IHT 436?  (I am struggling to see when IHT 402 would apply, vs IHT435&436).
3) Even if we can go straight to a Probate application (declaring as an Excepted Estate), will we nevertheless need to complete HMRC forms to transfer the unused allowance from my mother's estate?

Thanks so much in anticipation of any insight.

Peter
 

Keep_pedalling

If the estate is less than the two NRBs then you won’t need to do an IHT return and there are no hoops to jump though. If you need one or both of the RNRBs you will have to do a full IHT return.

peternette

Thanks so much Keep_pedalling - I was really hoping you would respond as you seem to be well informed and really helpful! :-)

The reality is that I will need to apply both RNRB's, so does that mean an IHT400 submission to HMRC?  And would I need to complete IHT 402, IHT 435 and IHT 436, (or just IHT 402)? 

Thanks again - it's really appreciated!

Peter  

Keep_pedalling

So when you say low value, you mean getting on for £1M!

You will need all those supplementary sheets plus others for things like bank accounts, shares, household items ect.

peternette

Indeed.  The frustration is I can see that, at the end of the day, no IHT will apply, so there I was thinking I could avoid HMRC engagement.  But it seems I will not be spared the joys of IHT400, IHT421, IHT422, IHT406, IHT 435, IHT436, IHT411, IHT422 etc  

May I please ask, do you know if I should use IHT402 in addition to (or instead of) IHT435 and IHT436 to effect the transfer of my mother's NRB? (She pre-deceased my father).
 
Thanks again - you are really helping me.

Peter

Keep_pedalling

peternette said:

Indeed.  The frustration is I can see that, at the end of the day, no IHT will apply, so there I was thinking I could avoid HMRC engagement.  But it seems I will not be spared the joys of IHT400, IHT421, IHT422, IHT406, IHT 435, IHT436, IHT411, IHT422 etc  

May I please ask, do you know if I should use IHT402 in addition to (or instead of) IHT435 and IHT436 to effect the transfer of my mother's NRB? (She pre-deceased my father).
 
Thanks again - you are really helping me.

Peter

Assuming all of your mother’s transferable NRB is available, you will need all three if the estate is over £850k.

peternette

Many thanks again Keep_pedalling.  Your good guidance is very much appreciated. :-)