IHT forms process?

bunnygo

situation: two executors/beneficiaries on second parent will. Paid for a legal advice session which confirmed all is straightforward, no trusts etc, eligible for 2 x RNRB. Now going DIY. Both executors/beneficiaries in agreement (happily) and other person happy for me to make it all happen. No charity bequests, straight split down the middle.

Estate is not excepted as is over the 2 x IHT limit. Still a valuation awaited, but looking almost certain total will be under £1M so no actual tax to pay. Not eligible for reduced IHT form.

I have applied for the IHT reference number which I see comes by post. Once I have that I believe the process is:

- complete IHT400 and related schedules online, adding the IHT reference. I will refer to the 95 page guide to make sure I get the detail right. Schedules include the ones to claim the unused IHT and 2 x RNRB.

- print them out and send off, with a copy of the will and a copy of the power of attorney that I was using previously.

- wait 20 working days or so, hopefully receive a code to do the probate application and a confirmation that there is nothing to pay. If there is something to pay, pay it.

- once have the code, complete and then submit probate application (I've done that one before)

I also see that both executors need to sign the IHT form, and unlike for probate there is no online mechanism. We are 150 miles apart,  so guessing this means get other person to print out the relevant page and then post to me.

any errors? Anything I've missed? Obviously want to keep things moving so we can the house on the market.

thank you for help.

DancingBadger

In my case, having waited the 25 working days requested, I eventually had to ring for the code.  The letter arrived much later and the date on it showed the code had been allocated a week after the form had been received.

When you eventually come to send the original will and covering letter (which you download), you will also need to send this form, duly completed.

https://assets.publishing.service.gov.uk/media/6731eb962cccb48648badaee/PA15_1124.pdf

bunnygo

thank you - to clarify, the other executor isn't renouncing, I'm just doing all the admin (as they have a Real Job) and they will then check and sign as well.

DancingBadger

bunnygo said:

thank you - to clarify, the other executor isn't renouncing, I'm just doing all the admin (as they have a Real Job) and they will then check and sign as well.

You can't make multiple applications or joint applications for one will.  Q17 on IHT400 asks for one point of contact only.  

There's nothing to stop you doing the legwork for the other person to check, but only one of you can sign and be the point of contact.

The other executor can either renounce or reserve powers.

bunnygo

got it, that's how it will be - I'll be the point of contact.

do I have the process right? I was hoping for a flowchart from gov.uk but sadly not!

Runner_Duck

Maybe it has changed since early 2023 but I was nominated as the contact person but my brother who was also an Executor also had to sign the Declaration. Don't forget to keep copies of the signed forms.

DancingBadger

bunnygo said:

got it, that's how it will be - I'll be the point of contact.

do I have the process right? I was hoping for a flowchart from gov.uk but sadly not!

Yes, you've got the process right.  

Please don't make the same mistake as me by waiting patiently for the letter with the code to arrive.  With the benefit of hindsight, I should have called HMRC to chase for it about two weeks after I applied.  That delay set me back by over a month before I could submit the IHT400 and relevant schedules.

(Top tip: Don't spend too much time trying to answer Q17 on p4 of IHT400.  It's nonsensical.  I gave up and phoned HMRC for help; the response I received was laughter followed by "Most people ignore it.")

bunnygo

thank you, that's reassuring that I am on the right lines. Noted to chase up the reference number in a week's time. I'll have all the valuations by then.

Q17 just seems to ask for details of the person dealing with the estate (i.e. me). Am I missing something?

bunnygo

update - IHT ref turned up within 10 days of request so that bit seems to have worked.