IHT400, RNRB & transferable NRB

yetanotherusername

My father died recently & my mother passed away in 2018 and as far as I know everything in her will went to him.

I'm currently completing the full IHT400 as I will need to use his RNRB and my mother's transferable NRB.

Do I need to complete IHT402 if the transferable NRB is managed by the Probate application?

I'm assuming it's "yes" as IHT is managed by HMRC rather than the Probate service?

Many thanks

RAS

What were the values of your parents' estates? And the value of their house, owned as joint tenants or tenants in common?

Keep_pedalling

If you have to do an IHT return then you do need to complete IHT402.

yetanotherusername

https://forums.moneysavingexpert.com/discussion/comment/82040549#Comment_82040549

From what I recall, they each had a life interest in their property as part of a Trust. I was named as a Trustee (and an Executor).
After my mother died, as an executor I signed the IHT205 so no IHT was owed at that point as everything went to my Father I believe.

We later dissolved the Trust which gave him sole ownership of the property which was subsequently sold when he down-sized and bought a flat.

Net estate value for IHT is just under £700k

Of which approx £500 is the property.

So I'm intending to use

1. His NRB of £325k
2. His RNRB
3. My mother's NRB of £325
   
   
   It's just a pain having to complete a full IHT400 when I know that there's no IHT due.
   

RAS

If the estate value exceeds £650k, you have to get the HMRC confirmation before you apply for probate. Doing otherwise/later will just cause havoc for application.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82040798#Comment_82040798

Were these trusts only embedded in their respective wills so only came into effect on mother's 1st death, or a single trust set up during their joint lifetime as part of a potential care home fees avoidance stategy?

yetanotherusername

https://forums.moneysavingexpert.com/discussion/comment/82040904#Comment_82040904

I don't know I'm afraid. I'm trying to get hold of her will. Hopefully still in the solicitors archive

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82045238#Comment_82045238

In that case was there a standalone trust document, the terms of which you subsequently wound up in dissolving the trust you mentioned? If there was such a standalone trust what was the date it was created and who is on record of creating it?

If the trust had originated under the terms of your mother's will, that would have been the sole 'trust document' related to the subsequent winding up of the trust. The fact you now say you have never seen that Will begins to suggest there was a standalone trust, so need to know its exact terms prior to it being dissolved to make sure it did not later effect the availability of your late mother's transferable residence nil rate band.

Intervening trusts of the marital home if not properly/carefully drafted can lose the residential nil rate band, something which has already recently arisen on this forum.

Keep_pedalling

https://forums.moneysavingexpert.com/discussion/comment/82045238#Comment_82045238

You said you signed IHT205 which would only be required if you also needed probate, so the solicitor will no longer have the will, but you can get a copy from the probate office (assuming your parents were in England or Wales)

https://www.gov.uk/search-will-probate

yetanotherusername

https://forums.moneysavingexpert.com/discussion/comment/82045804#Comment_82045804

Thank you so much! Ordered and downloaded the grant and will

yetanotherusername

So the will states that:
- appoints my father, myself and siblings as trustees
- states a life interest in the property she lived in with my father
- life tenant will be her husband
- "trust fund" defined as her share of the property
And has the following clauses:

The rest of the will seems to be pretty standard. So by the looks of the above, the trust was created at the time of my mother's death?