Reporting change to value of estate

Birdspotter26

If a further bank account is found for a deceased after HMRC has provided the executor the unique code, but before the application for a grant of probate, how should the executor deal with the probate application? It is a relatively small sum (say £900 approx) and there is no IHT payable at on the estate. HMRC say do not contact them unless tax is due.

But how then should an executor deal with the statement of truth they are signing for the probate application, as strictly speaking the estate value has changed?  Can this be referenced in the probate application? Or should a C4 Corrective Account form be completed to HMRC first? 

It must be quite common for old bank accounts/ assets to be discovered in the 4 week period between IHT accounts being submitted and probate being applied for but I cannot seem to find an answer for how to best deal with this.
Many thanks.

probate_slave

I understand your concern, and from the lack of response it's clear that your situation is unusual. IHT400 is only submitted for a small proportion of estates, and most assets are generally known by the time it's completed.

But I think you are perfectly fine to go ahead and apply for probate using the unique code that HMRC gave you. The legal statement only requires you to confirm that the application as a whole is truthful, that you will collect the estate while keeping account of it and provide details if the Probate Registry ever asks for them. Figures given to HMRC can be provisional and new assets come to light at any time: neither prevent you being granted the right to administer the estate.

I certainly wouldn't attempt any correspondence with HMRC, especially not a C4 which is designed purely to adjust the amount of IHT payable. And nor is there anywhere on PA1A (or online equivalent) to mention that the gross estate has just grown by £900. The Registry really doesn't care, in fact last year someone on this forum received a grant with gross and net figures both multiplied by 100. The Registry apparently couldn't see any problem and initially refused to correct the error.

Birdspotter26

Thank you so much for responding to this. My concern is that the legal statement does testify to the value of the estate too though, doesn't it? I am surprised there is no simple box to allow executors to rectify the figure, especially if no tax is due.

probate_slave

Sorry @Birdspotter26, I was unable to reply while away. My view is that HMRC are responsible for the estate size, while the Probate Registry is responsible for everything else. You are only being asked in the probate application to copy figures which HMRC have already agreed and passed on to the registrar. If HMRC don't want to adjust them, that shouldn't be your problem. And I don't believe the legal statement on PA1A refers anywhere to the estate size.
Anyway, I hope your probate is well on its way by now.

Birdspotter26

Thanks very much, v reassuring.