Help on Inheritance Tax forms - Are the required for estate of 375k going to grandchildren?

Ginger_chap

Hi,

My father's estate is likely to worth about 350-375k (from house sale less funeral expenss etc). The contents will be offered to charity shops and have no real value. He has little in bank accounts.

The estate has all been left to 4 grandchildren in the will. Me and my brother are executors. 

So this estate value is above the 325k nil rate band but when the residence nil rate band is added (up to 500k to direct descenants) I assume no tax has to be paid. However my question is whether this would be regarded as an excepted estate? 

My understanding from reading the IHT400 ineritance tax form is that excepted estates do not need a submission sending to HMRC.

Or as it over the 325k nil rate band will I need to complete both the IHT400 and IHT 435 form? Also when are these forms required to be submitted? As part of probate application?

It's very confusing and a little overwhelming?

Any help of advice anyone can over would be grealy appreciated, it stressing me out massivley.

Thanks 

Keep_pedalling

Is he a widower? If he is then, assuming he inherited everything from his wife, his estate also has the transferable NRB from her estate, so no IHT and no IHT return required.

If he is not, then it is not an excepted estate. Still no IHT to pay but a full IHT return will need to be completed to claim his residential NRB.

Ginger_chap

He divorced from his wife (my mum) many years ago (over 40years). So it sounds like it isn't an excepted estate (as over the 325k threshold) and will require IHT400 form and also IHT435 form to claim the residnce NRB, is that correct? Many thanks for your input it is appreciated.  

Keep_pedalling

Yes, IHT400 plus several supplementary forms including 435. 

msb1234

These look quite daunting to complete, but if you’re methodical and read the help guides you’ll be ok. Once submitted, you’ll receive a code to use for the probate application, which will be easy to complete as you’ll have done all the tricky stuff already.