Probate value and IHT

Plodey

HI I am going through the process of starting probate calculation. I have used the Govt calculation sheet but I do not understand why the Gross estate value for IHT is different to the gross probate value? 
Also the value of the estate for IHT is @ 10k over the 325k threshold, but it says there is no IHT to pay? 
Any help or experience would be appreciated
Thank you 

Keep_pedalling

The two values may be different because the IHT value includes non heritable items such as a home owned as joint tenants or gifts made in the previous 7 years whereas the probate value does not include these.

You need to provide a lot more info for the second part of your question, what was the marital status of the deceased? Did they own a home, is what is the relationship of the main beneficiaries to the deceased?

Also IHT is based on net not gross value.

Plodey

Hi thanks for the response. The deceased was a single gentleman, never married, and lived in his house with his sister, also never married. The house was put into a trust in 2008, just outside the 7 year window so I have entered half the house value as part of his estate. The rest of the estate value is cash in his name. 

Keep_pedalling

Plodey said:

Hi thanks for the response. The deceased was a single gentleman, never married, and lived in his house with his sister, also never married. The house was put into a trust in 2008, just outside the 7 year window so I have entered half the house value as part of his estate. The rest of the estate value is cash in his name. 

Is his sister still alive? Were they joint owners when it was put in trust? Who benefits from the trust on his death? Are you also a trustee?

The 7 year rule does not apply to property put in trust if you carry on living there as it is classed as a gift with reservation. As a trust is involved you should seek professional advice as getting this wrong can land you in a heap of trouble. 

Plodey

His sister is still alive, it was set up so that she would always be able to live there. 

He was single owner
the property will be part of her estate when she passes. 

Yes I am a trustee of the property trust 

Keep_pedalling

Plodey said:

His sister is still alive, it was set up so that she would always be able to live there. 

He was single owner
the property will be part of her estate when she passes. 

Yes I am a trustee of the property trust 

It would have been a lot simpler to make her a joint owner rather than add the complexity of a trust. It would also taken half his house outside his estate after 7 years, but I do not believe this is the case with the trust so I fear for IHT purposes the whole house may form part of his estate, but I think this is a case where you need professional advice. 

Plodey

Thanks for your help, I think that makes sense