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Where Taxpayers and Advisers Meet

Excepted estates

cliff99
Posts:12
Joined:Mon Apr 10, 2017 3:20 pm
Excepted estates

Postby cliff99 » Sun Nov 17, 2019 4:46 pm

I am the executor of a recently deceased person and am hoping to be able to apply for probate on the basis of the estate qualifying as an “excepted” estate. In which case my application will be on IHT205 rather than the more complex and demanding IHT400.
My initial enquiries indicated that the value of the estate cannot exceed £325,000 if it is to qualify as an “excepted” estate, but I have since been informed that the £325,000 limit can be exceeded under certain conditions
1) If the spouse of the deceased has died first, and has not used his/her allowance of £325,000, then the limit for an “excepted” Estate can be increased to £650,000.
2) Furthermore, should the family home of the second to die have been left to the children or grandchildren, then the value of the family home (subject to the current financial limits) may also be added without jeopardising the “excepted” status.
Have I been correctly informed?

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

Re: Excepted estates

Postby AGoodman » Mon Nov 18, 2019 3:21 pm

1) Yes
2) No, I'm not aware of the residential/residential nil rate band (concerning the family home) being a factor for excepted status. If you wanted to claim it, to extend the nil rate band, you will need to file IHT400.


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