Probate & IHT Form

Garf1234

Hi,
I can see several entries with people asking similar questions but if someone can "comment" that would be helpful.

My mum has recently passed away and my brother and I are the only family left.

We are applying for probate (as there is property involved) but have got confused on the part about whether we do need to fill in IHT forms or not.

It says "The checker will tell you if you need to submit form IHT400, or if the estate is an ‘excepted estate’ and you do not need to submit a form". From the calculations and all the items filled in we are below the value stated and it says No IHT is due, but it does not state as the message says above if we still need to fill in a form?

On parts of the Probate site it says, if you do not have IHT to pay you need to fill in a IHT form due to being an excepted estate, but on another section it reads that if its an "excepted estate" you don't have to.

When you click on the link to fill in IHT400 form there is a pop up that says "Before completing this form, have you checked you need to? You can do this by using the Inheritance Tax Checker Tool. https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value#use-the-online-inheritance-tax-checker If there is any Inheritance Tax to pay, you should obtain the correct reference number by applying online at www.gov.uk/paying-inheritance-tax you do not need to apply for a reference number if there is no Inheritance Tax to pay."

So basically do we have to fill in a IHT form or not?

The estate comes out as an excepted estate & we are below the thresholds stated.

Comment appreciated (please be polite) - Thanks

poppystar

If you are sure the estate meets the excepted estate criteria and the basic NRB allowance plus any transferred from predeceased spouse covers it then there is no need to complete IHT forms. If you need to use residential NRBs then you will need to even if there is no IHT due.

Garf1234

https://forums.moneysavingexpert.com/discussion/comment/81867148#Comment_81867148

Hi Poppystar! The Net Estate value is £225,119 including property, and my brother and I are both direct descendants of mum.

Marksfish

My Wife has just done this with a slightly higher value estate for her and her brother. She used the checker, which said no IHT, she didn't submit a form., Probate submitted 8pm on the Thursday, granted at 4.30pm the following Tuesday and certificate arrived by Thursday!! It said average wait time 12 weeks, so be prepared.

Keep_pedalling

No IHT return required on an estate of that value unless she made some very large gifts in the last 7 years of her life.

Sooz1966

I'm going through the exact same issues. The guidance is so confusing on gov.uk.

So, using the checker, it said no IHT to pay. We believed the estate was exempt, plus 2 parents allowance and a house gives us a threshold of over £800k - the estate is less than this at about £700k..Applied for probate and told today we do need to complete the IH tax form. I went back and did the checker again and sure enough, further down the result page , after it says 'save your form', it says 'complete iht400'. Why is it so confusing, i never saw anywhere about you must complete form if there's a house involved? The iht400 form is a nightmare - has to be completed online, then printed off and posted. You can't save part way through, there's loads of supplementary forms to complete, etc, etc. We've completely messed up as form should have been done before applying for probate. What a nightmare.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/81867481#Comment_81867481

It is not the fact that there is a house involved, it is that you need to claim a residential NRB that tips the estate into needing to complete an IHT return, If the estate of a widowed person falls below the NRB + any available transferable NRB from their spouse then you are not going to need to complete a return.

Sooz1966

Thanks Keep_pedalling. Yes, i didn't explain that fully. Sorry, I'm in a complete pickle with all this. I had a quick look at the form and is was so complicated, but hopefully, tomorrow I'll feel a bit better and can focus on it properly. I'm just a bit annoyed I cocked up, at the first step, despite reading the guidance carefully (I thought) and have got to do such a detailed analysis of everything even though IT won't be due.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/81867513#Comment_81867513

If you need any advice on completing the IHT return just ask, but to avoid confusion start a new thread of your own.