Understanding net probate value

ahfat41

Having a go at diy probate. I have used the online calculator. Probate net value is £175,000.What does this means pl? House £350,000. I understand the NRB is £325,000. Also if he has given £25,000 gifts for past 7 yrs, does that mean he has got £325,000 unused NRB to pass to the surviving spouse. Thanks

Keep_pedalling

The gifts do not form part of his estate for probate purposes but they do for IHT purposes so (assuming these were the only things that did not pass to his spouse) the transferable NRB will be reduced to £300k.

The net value for probate will be made up of his assets less debts. This would include his share of the house if held as tenants in common, but not if it was held as joint tenants.

ahfat41

Thank you for the explanation. I understand with IHT to check whether you are not above the threshold. But what’s the purpose of probate value? 

Keep_pedalling

It’s simply a record that is recorded on every estate that goes through probate. It is a useful record for the executors of a surviving spouse especially if there is a big gap between deaths.