Please delete

W.Ford

Please delete

Thanks - Will

p00hsticks

I'm sorry for your loss(es). It must be a very difficult situation for you. 

My understanding is that you would first need to complete the probate application for your father and, assuming that you mother survives him by the 30 days specified in the will, his estate passes to your mother, if still alive, or into her estate if she has died. 

When you have wound up your fathers estate you can then start to deal with that of your mother. you'd need to apply for probate for her estate, and may need to fill in a IHT return first if you are going to need to claim the RNRB(s), even if no tax is due. 

Keep_pedalling

Survivorship clauses used to be common but they are risky as they can lead to an unnecessary IHT liability on the first death if the survivor does not survive for the period stated in the will, and even if it doesn’t it may force you to do an IHT return for his estate to enable you to claim his residential NRB.

Do you have an idea as to the value of your father’s estate? 

Keep_pedalling

W.Ford said:

Thank you both

Keep_pedalling said:

Survivorship clauses used to be common but they are risky as they can lead to an unnecessary IHT liability on the first death if the survivor does not survive for the period stated in the will, and even if it doesn’t it may force you to do an IHT return for his estate to enable you to claim his residential NRB.

Do you have an idea as to the value of your father’s estate? 

I've had a RICS valuation of the house which came back at 300k (they have a 50% share each), and they had a similar amount in savings split between them. If you could give me a bit of an idiots explanation of why the IHT return is needed, that would be appreciated and save me a bit of research. 

With an estate of £300k each you would not need one, but you would do if their estates were somewhat higher or if the assets were not so evenly split.

Example  - Janet  and John have total assets of £900k comprising of a house worth £800k (TIC)  and £100k in savings evenly split Janet dies one week after John so the survivorship clause in his will comes into effect meaning his share of the estate goes to his children. Because he is leaving more than his NRB (£325k) to his children his executors are going to have to claim his residential NRB to avoid IHT which requires them to make a full IHT return.

Had Janet not died within the period of the survivorship clause no return would have been required for John’s estate because everything would be covered by spousal exemption.

In the above example if the home had been solely owned by John the clause would have created a substantial IHT liability that would have been avoided without the clause or if Janet had died first.