How to claim unused NRB on second date?

cherry76

If there was no probate on first death how do you claim that person unused NRB? When filling the IHT forms, there is a question do you want to claim unused NRB? With no probate and IHT forms completed there are no records of the late person assets? Does this question make sense? It’s doing my head in whether to apply for probate now to make things easier later on  or leave as it not was required. Thanks

Keep_pedalling

Probate is often not required on the death of the first spouse, but this should not cause any issues with claiming the transferable NRB as you are not required to provide any details of the first estate other than the amount of the transferable NRB available.

This is based on how much, if anything, the first to die left to anyone other than their spouse, the amount they had in their estate does not come into it. Even if the first to die owned nothing their NRBs are still available to transfer to the surviving spouses estate simply because they were not used for their own.

Just compile an accurate set of estate accounts that can be revered too on the second death.. 

cherry76

Thanks. E.G his share of house left in will trust is approx £175,000. He had £50,000 savings and gave £10,000 to his grandson in his will. For past 7 yrs he has gifted £42,000 to son.  What will be his unused his NRB I can claim pl? Have been having conflicting advice tgat I need probate for him to avoid complications when mum passed. Also been told that probate is required to put trustees name on title deed.LR has confirmed as surviving owner I can transfer. Thanks for clarifying this for me. 

Keep_pedalling

cherry76 said:

Thanks. E.G his share of house left in will trust is approx £175,000. He had £50,000 savings and gave £10,000 to his grandson in his will. For past 7 yrs he has gifted £42,000 to son.  What will be his unused his NRB I can claim pl? Have been having conflicting advice tgat I need probate for him to avoid complications when mum passed. Also been told that probate is required to put trustees name on title deed.LR has confirmed as surviving owner I can transfer. Thanks for clarifying this for me. 

The house is covered by spousal exemption (even though in trust, the surviving spouse is the beneficial owner and it falls in her estate for IHT purposes) so the gifts and bequest use up £52k of his NRB reducing the transferable NRB by 16%

cherry76

I understand it’s only the gifts and bequests that count. I thought the house and savings are included. Thanks for taking the time to answer my query. It was doing my head in whether to apply for probate or not. I thought I had to claim NRB on second death.