Critical illness payment received after death

lake888

There is a payout from a critical illness insurance claim after date of death of my spouse. When I do probate online, do I need to include the amount anywhere? Thanks.

poseidon1

Just to take a step back a moment.

When exactly did your husband died?

As a preamble to the online probate application have you used HMRC's online calculator to arrive at your husbands gross and net estate for probate purposes? That is where you would include the critical illness policy proceeds.

See link below:

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

Finally, are you going to trouble of completing IHT 400 when this maybe unnecessary for your husband's estate? Your past posts are now somewhat confusing in that regard.

lake888

@poseidon1 My husband died in April and the payout was received in May. I have used the IHT calculator but not sure whether I should include that payment as I understand I should put in figures as of date of death. If I have to include that payment in the IHT checker, will it be under other assets?

I'm not supposed to complete IHT 400. The questions I asked before were for my own reference if it turns out I have to complete the form.

Woodstok2000

Was the critical illness paid out to your husband, or was it a payment to you as a beneficiary of the plan?

lake888

@Woodstok2000 It is a pay out to my husband.

Keep_pedalling

From one of your previous threads you are inheriting your husband's entire estate so no IHT return required as it an exempt estate. If this was an outstanding claim while he was alive then include it as part of his estate for probate valuation, if this was a claim put in after his death then leave it off. With an exempt estate it is not going to make any difference either way.

Woodstok2000

https://forums.moneysavingexpert.com/discussion/comment/82046202#Comment_82046202

In that case I believe it would form part of his estate, but as others have noted it's likely you are exempt and so it won't make a difference either way.

lake888

@Keep_pedalling It was an outstanding claim while he was alive. I'm just not sure where I should put the amount in the IHT checker, or the actual probate process?

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82046216#Comment_82046216

Sounds like death in April followed by a rapid pay out in May suggests a CI claim was submitted by husband pre death, so a debt due to the estate at date of death and should be included as estate asset.

Hopefully the OP is not going to the trouble of an unnecessary IHT400, which was inferred in her previous April post.

poseidon1

https://forums.moneysavingexpert.com/discussion/comment/82046236#Comment_82046236

Are you using the HMRC interactive IHT /estate value checker in the link I sent you, or something else entirely?

lake888

@poseidon1 Yes I am using the checker in your link. There is a question "What was the value of other assets they owed? Include any assets you have not told us about in previous answers." I suppose I should put it here?