IHT Allowance - IHT402 and IHT400

chachacha1820

My mother died in 2013 and left everything to my dad. My father has recently died and has left £10k each to his two grandchildren and the balance of his estate (approx. £560k) to his two daughters (I am one of them). We are trying to apply for my mum's nil rate band to be transferred to my dad's estate (100% as my mum didn't use any of her allowance). I want to ask, do I just need to fill in IHT402 and IHT400? Which form should I fill in first? Do I need to fill in IHT435 as well? It says that the forms are interactive i.e. you fill it on line but every time I put a figure in one of the boxes, it deletes it.

One of the questions on IHT402 (to transfer the nil rate band) asks "What was the net value of the spouse or civil partner’s estate passing under their will or intestacy?" Do I put 50% of the estate (re my mum who died first) as she owned half and my father owned half.

Any help would be gratefully received. Thank you.

Keep_pedalling

As his estate is below £650k you do not need to do an IHT return. The transferable NRB is claimed on the application for probate (confirmation if he lived in Scotland).

If you have any questions or need help with the probate application you will find plenty of help over on the deaths, funerals and probate board.

https://forums.moneysavingexpert.com/categories/deaths-funerals-probate

chachacha1820

Thank you. It says I have to complete the forms anyway to determine that I don't have to pay IHT - no way around it I don't think. Many thanks.

p00hsticks

https://forums.moneysavingexpert.com/discussion/comment/82004672#Comment_82004672

Where exactly does it say that ? As far as I'm aware you only need to do that if you are claiming the additional Residential NRB, and from what you say you should;nt have to do that.

DRS1

One of the questions on IHT402 (to transfer the nil rate band) asks "What was the net value of the spouse or civil partner’s estate passing under their will or intestacy?" Do I put 50% of the estate (re my mum who died first) as she owned half and my father owned half.

I think they are looking for the value of her estate when she died so in 2013. When I did the forms for my mother in 2015 I had to find a figure for my father who died in the 70s and just used the figure I found on the Grant of Probate for him. I couldn't swear that was 100% the right approach but it was the best I could come up with.

I can't help with the interactive stuff I think I just printed the forms out.

poseidon1

At only £560k, this estate sounds as if it should meet the Excepted Estate criteria set out in the guidance below where no IHT is due -

https://www.gov.uk/valuing-estate-of-someone-who-died/check-type-of-estate

If so you should not have to complete IHT 400 and the ancillary supplements. You should be able to use the link in the guidance below to confirm no IHT is due, then having done so proceed to apply for probate online, all without having to interact with IHT 400 -

https://www.gov.uk/valuing-estate-of-someone-who-died/estimate-estate-value

https://www.gov.uk/applying-for-probate/apply-for-probate?step-by-step-nav=4f1fe77d-f43b-4581-baf9-e2600e2a2b7a

However, I concede HMRC explanations and guidance does not make it easy for the layman to recognise how to bypass IHT 400 reporting.

Keep_pedalling

As the others have said you should not have to do an IHT return in this situation. It sounds as though the HMRC guidance has confused you which is their fault not yours.

chachacha1820

https://forums.moneysavingexpert.com/discussion/comment/82004815#Comment_82004815

When I click on filling out IHT402 (I need to transfer mum's allowance (deceased first) to my Dad (now deceased), it says I have to fill out IHT 400……I am so confused and I can't get through to anyone at HM probate office to check (keeps repeating it's an hour wait and I've been waiting for 20 minutes already)…..

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82005742#Comment_82005742

Please believe me you do not have to complete any IHT forms for an estate of this value where the entire transferable NRB is available. You would if it exceeded £650k to be able to claim both the transferable NRB and the residential NRB.

All you need do is work through the on line probate application. There you will be asked if you want those claim the transferable NRB, there are no extra forms to fill in.

https://www.apply-for-probate.service.gov.uk/start-eligibility

poseidon1

I concur with @Keep_pedalling.

https://www.apply-for-probate.service.gov.uk/start-eligibility

Using the link he provided you, first click on '' online IHT checker ( opens in new tab) ''. In that section you will insert the assets and liabilites of the estate to arrive at the net taxable estate value. This will show the estate is comfortably below £650k.

You then navigate back to the original link and hit the continue button to start the Q & A session to create an online probate application account.

At no time is necessary for you to interact with any of the IHT 400 forms and supporting supplements, if you utilise the above process.