DIY probate and life interest trust help

mossy26

Hello, I am in the process of applying for probate online.

My father left his 50% share of the house (his share being worth approximately 290k) and around 75k in savings to be held in a life interest trust with my stepmother as beneficiary and me as remainderman. He also gifted me various sums of money over the last 7 years, bringing his total estate value to 450k

Does the fact that his estate is left in trust with his spouse as beneficiary court as spousal exemption for inheritance tax purposes?

I am using the government site to calculate whether any tax is due, and work out the estate value for probate purposes and trusts are not mentioned at all…

poseidon1

The entire value of the trust ( 50% of house and £75k income bond), is covered by the spousal exemption.

Presumeably the failed £85k gifts to you within the last 7 years is after deducting your father's annual £3,000 exemptions for the period?

On the figures quoted in your previous post as well as the new information you have supplied for failed potentially exempt transfers, there should be no IHT exposure at the present time.

mossy26

Thank you! I thought so but suddenly doubted myself. Yes, I deducted the annual £3,000, plus £5,000 which was a wedding gift.