Probate and inheritence tax forms - help!

My mum died on 7 August and has left a will. The will leaves a fixed sum of money to each of her grandchildren and the remainder to be split equally between me and my sister.

We have had the house valued for probate purposes today and have her bank statements but I am really, really confused about which forms to complete.

My dad died back in 2006 leaving everything to my mum, hence not using any of his nil rate for IHT purposes. I am trying to apply to get this allowance transferred to my mum's nil rate. I understand that I need to complete IHT402 to do this. In addition to this, because my mum has bequeathed the house to myself and my sister, we need to claim the additional 125k allowance and need to complete form IHT435.

I called the probate office today to ask what forms I needed to complete and was told:

PA1
IHT217
IHT400
IHT435

However, upon downloading these forms, I am more confused than ever! The IHT400 lists a whole other range of forms I need to complete:
IHT205
IHT435
IHT436
IHT402
IHT405
IHT406
IHT407
IHT409
IHT435
IHT217
and some of the questions are not clear (to me anyway). I am not sure whether the AVIVA comes under the listed stocks and shares or as something else? It is a bond that she took out in 2006. She cashed in some but has some left in it - approx 16k.

The house is worth around 325k
There is approx 55k in a range of bank accounts
There is approx 16k in an AVIVA fund
Jewellery valuing approx 8k
Personal effects and furniture worth approx 8k

This makes a total of approx 404k.

This to me makes no IHT payable and below the IHT threshold of 775k.

I have tried researching and some places suggest that as the value of the estate is below the IHT threshold applicable, then I only need complete the IHT205 along with the probate form.

My head is all over the place - can anybody shed some light?

Thankyou.

Comments

  • kidmugsy
    kidmugsy Posts: 12,709
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    We went to a lawyer rather than wrestle with this sort of thing while my wife was very upset.

    On the other hand the lawyer did botch several aspects of the job.

    The AVIVA thing sounds as if it might be a single premium life insurance bond i.e. not S&S.
    Free the dunston one next time too.
  • SeniorSam
    SeniorSam Posts: 1,670
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    edited 31 August 2018 at 8:55AM
    Sorry for your loss.

    As there will not be any IHT to pay the people at the tax office are very kind and helpful these days so dealing with it yourself will save a lot of money and help in filling in forms can be done with a few phone calls.

    Good luck

    Sam
    I'm a retired IFA who specialised for many years in Inheritance Tax, Wills and Trusts. I cannot offer advice now, but my comments here and on Legal Beagles as Sam101 are just meant to be helpful. Do ask questions from the Members who are here to help.
  • Sorry for your loss. Having lost my dad fairly recently I can relate to how complicated it can seem.

    Our circumstances are different, and I'm certainly not an expert, but I would definitely suggest starting with IHT205 (2011), as much simpler if it is appropriate (sounds like it could be, but again, I'm no expert). Also look at the info around transferable allowances (e.g. https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold)

    Also, there are some very knowledgeable people over on the probate board that appear very willing to help (if an existing thread doesn't help....) :

    https://forums.moneysavingexpert.com/forumdisplay.php?f=217

    All the best
  • Keep_pedalling
    Keep_pedalling Posts: 16,440
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    Sorry for your loss. Having lost my dad fairly recently I can relate to how complicated it can seem.

    Our circumstances are different, and I'm certainly not an expert, but I would definitely suggest starting with IHT205 (2011), as much simpler if it is appropriate (sounds like it could be, but again, I'm no expert). Also look at the info around transferable allowances (e.g. https://www.gov.uk/guidance/inheritance-tax-transfer-of-threshold)

    Also, there are some very knowledgeable people over on the probate board that appear very willing to help (if an existing thread doesn't help....) :

    https://forums.moneysavingexpert.com/forumdisplay.php?f=217

    All the best

    Agree, this estate should only require IHT 205 and 217.
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