Inheritance Tax Limit, Nil Rate Band, and Probate

Regalia6969

Hi all,

My grandmother passed 2 months ago and I am still trying to sort out probate as I am executor of the estate. It isn't a big enough estate to justify solicitor costs so I'm handling it all myself. My grandfather passed back in 2008, and as far as I know everything of his estate went to my grandmother.

I'm now trying to figure out what the inheritance tax threshold should be for her estate, as I don't know whether his unused tax-free limit transferred to her or by how much. Can anyone advise as to how I would investigate this? What I would need? Where to look or where to begin? Many thanks. 

Keep_pedalling

Her estate will have her NRB plus her husband’s NRB, so if her estate is below £650k then no IHTand you don’t need to do an IHT return. 

If it is more than that and she owned her home (or had previously owned a home) then you also have her residential NRB and the transferable residential NRB bands available which depending on the value of the home) could take the exemptions up to £1M, but claiming either or both of them will require you to do a full IHT return.

Regalia6969

Keep_pedalling said:

Her estate will have her NRB plus her husband’s NRB, so if her estate is below £650k then no IHTand you don’t need to do an IHT return. 

If it is more than that and she owned her home (or had previously owned a home) then you also have her residential NRB and the transferable residential NRB bands available which depending on the value of the home) could take the exemptions up to £1M, but claiming either or both of them will require you to do a full IHT return.

Thank you for your answer. Is there a way I can research or verify that this is the case for my specific bereavement? As I have no idea truly how much of the initial NRB was used or transferred when my granddad died. And the gov website asks how much tax free allowance the deceased inherited out of the £325,000. Is there a way for me to check what the value would be? 

poppystar

If you have access to the husbands Will then you will be able to see if anything went to anyone other than his wife.

madbadrob

poppystar said:

If you have access to the husbands Will then you will be able to see if anything went to anyone other than his wife.

If you dont it can be obtained at https://probatesearch.service.gov.uk/#wills  if it went through probate

Rob