Can I apply for probate without filling in IHT400

lake888

RAS said:

Is this a joint tenancy or tenants in common?

It's a joint tenancy.

Shylock_249

probate_slave 

As poppystar suggests, the most useful thing your husband could do would be to put assets into your joint names so that they pass to you by survivorship.

I strongly agree and think it would be a good idea that lone couples of a certain age, let's say 70 would be able to merge their existing ISAs into a joint ISA account.  In my case that would avoid Probate.

Some banks and building societies have low limits; IIRC Close Bros and Paragon Banks are as low as 20k.

I phoned the 6 banks we have ISAs with asking for the Probate limit and each agreed that it would be easier for the customer and certainly for the bank if Merged Joint ISAs were introduced by the Government.

It seems ridiculous to me that a couple could have a million in a joint account with either of the banks I've listed above and if each had an ISA of just 20k bank would demand probate.

I'm suffering from Probatephobia at the moment and considering doing away with the ISA wrapper for my and my wife's ISAs, her total is £484k mine less at £435k.  Our taxable savings of £540k are in joint names.

I'd be able to deal with Probate with help from this forum but my wife certainly wouldn't and the cost of employing someone to do it might cost more than the interest saved.

Keep_pedalling

Shylock_249 said:

probate_slave 

As poppystar suggests, the most useful thing your husband could do would be to put assets into your joint names so that they pass to you by survivorship.

I strongly agree and think it would be a good idea that lone couples of a certain age, let's say 70 would be able to merge their existing ISAs into a joint ISA account.  In my case that would avoid Probate.

Some banks and building societies have low limits; IIRC Close Bros and Paragon Banks are as low as 20k.

I phoned the 6 banks we have ISAs with asking for the Probate limit and each agreed that it would be easier for the customer and certainly for the bank if Merged Joint ISAs were introduced by the Government.

It seems ridiculous to me that a couple could have a million in a joint account with either of the banks I've listed above and if each had an ISA of just 20k bank would demand probate.

I'm suffering from Probatephobia at the moment and considering doing away with the ISA wrapper for my and my wife's ISAs, her total is £484k mine less at £435k.  Our taxable savings of £540k are in joint names.

I'd be able to deal with Probate with help from this forum but my wife certainly wouldn't and the cost of employing someone to do it might cost more than the interest saved.

There are no such things as joint ISAs and it would be foolish to get rid of a substantial ISA just to avoid probate. 

Shylock_249

Keep_pedalling said:

Shylock_249 said:

I strongly agree and think it would be a good idea that lone couples of a certain age, let's say 70 would be able to merge their existing ISAs into a joint ISA account.  In my case that would avoid Probate.

I phoned the 6 banks we have ISAs with asking for the Probate limit and each agreed that it would be easier for the customer and certainly for the bank if Merged Joint ISAs were introduced by the Government.

There are no such things as joint ISAs and it would be foolish to get rid of a substantial ISA just to avoid probate. 

Yes I know there are no such things and didn't say there were.  My point is that it would be a good idea if the government introduced them.  

Keep_pedalling

Shylock_249 said:

Keep_pedalling said:

Shylock_249 said:

I strongly agree and think it would be a good idea that lone couples of a certain age, let's say 70 would be able to merge their existing ISAs into a joint ISA account.  In my case that would avoid Probate.

I phoned the 6 banks we have ISAs with asking for the Probate limit and each agreed that it would be easier for the customer and certainly for the bank if Merged Joint ISAs were introduced by the Government.

There are no such things as joint ISAs and it would be foolish to get rid of a substantial ISA just to avoid probate. 

Yes I know there are no such things and didn't say there were.  My point is that it would be a good idea if the government introduced them.  

Sorry, I misunderstood. 

lake888

probate_slave said:

We should perhaps also mention the £3m maximum gross value for excepted estates. The IHT manual clarifies that only the deceased's share of joint assets is counted:
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm06013

As poppystar suggests, the most useful thing your husband could do would be to put assets into your joint names so that they pass to you by survivorship.

Just a follow up question as I have read the above hmrc internal manuals again.

If my husband left everything to me and the value may be over £325,000, e.g.
- house value £500,000 (50% will be £250,000)
- Stocks and shares ISA in his sole name £255,000

In this case, do I need to complete IHT400 and possibly paying IHT tax?  Sorry it might be a silly question,

probate_slave

Not silly at all. I agree that IHTM06016 is confusing - it is referring to low value excepted estates.
Based on what you have told us, your husband's estate will qualify as an exempt excepted estate. No tax payable, and no IHT400 required.
The conditions are perhaps given more succinctly here:
https://www.thegazette.co.uk/all-notices/content/104142
https://www.gov.uk/valuing-estate-of-someone-who-died/check-type-of-estate