This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. To find out more about cookies on this website and how to delete cookies, see our Cookie Policy.
Analytics

Tools which collect anonymous data to enable us to see how visitors use our site and how it performs. We use this to improve our products, services and user experience.

Essential

Tools that enable essential services and functionality, including identity verification, service continuity and site security.

Where Taxpayers and Advisers Meet

probate submission

mill
Posts:42
Joined:Wed Aug 06, 2008 3:42 pm
probate submission

Postby mill » Wed Sep 06, 2017 8:37 am

I am the executor of an estate valued very close to £650,000. The first to die left everything to the second to die so the estate will benefit from a double IHT exemption of £650,000. Probate will therefore be comparatively simple and require only submission to the probate office of forms IHT 205 and IHT 217.
As the value of the estate is so close to the £650,000 IHT exemption, there is always a possible risk that during the probate process the value of the estate might be found to exceed £650,000.
Given that the deceased family home, which forms part of the estate, has been left to the deceased’s adult children there is a potential extra £200,000 IHT exemption available should it be needed under the “main residence nil rate band” allowance.

It appears that to claim the MRNRB, it requires the submission of IHT 400, even if the value of the estate is less than £650,000.

Submission of IHT 400 to HMRC and all the attendant forms that accompany it would make my task as executor more demanding and I would prefer to submit IHT205 and IHT217.
However In the event that the value of the estate might eventually be found to exceed £650,000 would I be permitted to reapply for probate using form IHT400, to claim the main home exemption allowance and thereby avoid any IHT

AGoodman
Posts:1738
Joined:Fri May 16, 2014 3:47 pm

Re: probate submission

Postby AGoodman » Wed Sep 06, 2017 10:24 am

Yes, and in fact if the estate turns out to be greater than £650,000 you would have an obligation to file a full account. (this is buried in paragraph 3 of the 2004 Regulations). You would have six months from discovering the value is too high.


Return to “Inheritance Tax, IHT, Trusts & Estates, Capital Taxes”