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Where Taxpayers and Advisers Meet

Mother Died Intestate - IHT, Home Valuation & Letters of Admin

Claudius
Posts:7
Joined:Wed Aug 06, 2008 3:26 pm
Mother Died Intestate - IHT, Home Valuation & Letters of Admin

Postby Claudius » Wed Nov 28, 2018 4:57 pm

My mother recently passed away and she had a 50% share of family home. Her 3 children hold the balance of interest as tenants in common. Nothing else in estate.
I'm shopping around for fixed fee quotes to do all the necessary work. I know letters of admin will be necessary and am told that as her share of estate is >350k, IHT 400 will be needed. That is needed in any case to claim residents nil rate relief of 125k.

I need to know whether the latter relief is retrospective. Can a dead person's assumed RNRB be used in this instance as well? I am told yes. Is that true?

On q of valuations, some are suggesting estate agents valuations should be good enough because they inflate values in the hope of a sale. So why should HMRC object anyway? If a rough call suggested our situation was borderline, could we then not request a red book valuation?

Also, where one has to enter funeral expenses on IHT 400, is an estimate for the funeral monument acceptable, if one had not been erected, and will not be until the ground is settled, in advice of cemetery management?
Thank you.
Thanks

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

Re: Mother Died Intestate - IHT, Home Valuation & Letters of Admin

Postby AGoodman » Wed Nov 28, 2018 5:57 pm

I'm not sure what you mean by retrospective. Can you explain? RNRB can, I think, be used towards property with a reservation of benefit if, for example, she gave you the remaining half share but reserved a benefit by remaining in occupation (that would of course involve the children's' half share forming part of the estate for IHT).

It is the PRs duty to provide an accurate valuation. If HMRC agree the value you place on the property then all is fine. If they decide it has a higher value, you are in a much better position vis a vis penalties if you have a proper valuation. It may also be fine if the estate is nowhere near taxable after the NRB, transferable NRB, RNRB and transferable RNRB (depending on which apply).

On the monument, an estimate should be fine provided you state as much in the additional information box. Presumably you could get a quote now.


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