Probate IHT400
Discussion
If it's inappropriate, someone will say, I'm sure.
I'm one of 2 executors of an estate. There is a will. Bequests total less than IHT allowance, the rest between 4 charities equally. The estate values over £1m so I have to complete IHT400 and not just IHT205, I believe.
Filling in IHT400, the Household and personal goods form - IHT407. There is a list of wishes expressed in written form, not in the will or as an official codicil. The will effectively leaves the household goods to us, the executors, to dispose of with reference to any separate written notes and lists. Am I correct in believing that all the goods and chattels have to be accounted for and represented on the 407, with appropriate probate valuation, or is it just those that fall outside the 'list of wishes'?
Last question - the estate has bequests that fall below the IHT threshold, the rest to 4 charities. Whilst providing the will with the probate submission, do I show the final estate calculation on IHT400 to equal the value of the bequests, and divide up the disparity between that sum and the total estate value between the charities equally, as per the will? Clear as mud, innit?
Any views appreciated, I accept that it is technical, and may not be the correct forum, but then again there is a wealth of experience available. I reserve the right to make up my own mind.
I'm one of 2 executors of an estate. There is a will. Bequests total less than IHT allowance, the rest between 4 charities equally. The estate values over £1m so I have to complete IHT400 and not just IHT205, I believe.
Filling in IHT400, the Household and personal goods form - IHT407. There is a list of wishes expressed in written form, not in the will or as an official codicil. The will effectively leaves the household goods to us, the executors, to dispose of with reference to any separate written notes and lists. Am I correct in believing that all the goods and chattels have to be accounted for and represented on the 407, with appropriate probate valuation, or is it just those that fall outside the 'list of wishes'?
Last question - the estate has bequests that fall below the IHT threshold, the rest to 4 charities. Whilst providing the will with the probate submission, do I show the final estate calculation on IHT400 to equal the value of the bequests, and divide up the disparity between that sum and the total estate value between the charities equally, as per the will? Clear as mud, innit?
Any views appreciated, I accept that it is technical, and may not be the correct forum, but then again there is a wealth of experience available. I reserve the right to make up my own mind.
For a large and/or complex estate, I would strongly recommend using a solicitor. You or the beneficiaries might pay a couple of grand, but for the peace of mind and knowing that you’re not going to get stung for a surprise IHT bill (or a penalty for incorrectly declaring) it’s money well spent IMHO.
I used a solicitor when doing my Dad’s estate, and he invoked a legitimate 15% discount on the value of Dad’s house that I would never have known about. This saved IHT to a value many times greater than the solicitor’s fee, so he more than paid for himself. You can bet that HMRC wouldn’t have alerted me to this discount! The whole process went smoothly and HMRC were happy with no queries.
I used a solicitor when doing my Dad’s estate, and he invoked a legitimate 15% discount on the value of Dad’s house that I would never have known about. This saved IHT to a value many times greater than the solicitor’s fee, so he more than paid for himself. You can bet that HMRC wouldn’t have alerted me to this discount! The whole process went smoothly and HMRC were happy with no queries.
Edited by Dr Mike Oxgreen on Saturday 24th March 16:59
sfr said:
If it's inappropriate, someone will say, I'm sure.
I'm one of 2 executors of an estate. There is a will. Bequests total less than IHT allowance, the rest between 4 charities equally. The estate values over £1m so I have to complete IHT400 and not just IHT205, I believe.
Filling in IHT400, the Household and personal goods form - IHT407. There is a list of wishes expressed in written form, not in the will or as an official codicil. The will effectively leaves the household goods to us, the executors, to dispose of with reference to any separate written notes and lists. Am I correct in believing that all the goods and chattels have to be accounted for and represented on the 407, with appropriate probate valuation, or is it just those that fall outside the 'list of wishes'?
Last question - the estate has bequests that fall below the IHT threshold, the rest to 4 charities. Whilst providing the will with the probate submission, do I show the final estate calculation on IHT400 to equal the value of the bequests, and divide up the disparity between that sum and the total estate value between the charities equally, as per the will? Clear as mud, innit?
Any views appreciated, I accept that it is technical, and may not be the correct forum, but then again there is a wealth of experience available. I reserve the right to make up my own mind.
Enough here to suggest you need professional help, not the mutterings of an internet forum.I'm one of 2 executors of an estate. There is a will. Bequests total less than IHT allowance, the rest between 4 charities equally. The estate values over £1m so I have to complete IHT400 and not just IHT205, I believe.
Filling in IHT400, the Household and personal goods form - IHT407. There is a list of wishes expressed in written form, not in the will or as an official codicil. The will effectively leaves the household goods to us, the executors, to dispose of with reference to any separate written notes and lists. Am I correct in believing that all the goods and chattels have to be accounted for and represented on the 407, with appropriate probate valuation, or is it just those that fall outside the 'list of wishes'?
Last question - the estate has bequests that fall below the IHT threshold, the rest to 4 charities. Whilst providing the will with the probate submission, do I show the final estate calculation on IHT400 to equal the value of the bequests, and divide up the disparity between that sum and the total estate value between the charities equally, as per the will? Clear as mud, innit?
Any views appreciated, I accept that it is technical, and may not be the correct forum, but then again there is a wealth of experience available. I reserve the right to make up my own mind.
You need to declare everything, but there will be no IHT payable on assets left to charity.
Dr Mike Oxgreen said:
For a large and/or complex estate, I would strongly recommend using a solicitor. You or the beneficiaries might pay a couple of grand, but for the peace of mind and knowing that you’re not going to get stung for a surprise IHT bill (or a penalty for incorrectly declaring) it’s money well spent IMHO.
Dr Mike Oxgreen said:
I used a solicitor when doing my Dad’s estate, and he invoked a legitimate 15% discount on the value of Dad’s house that I would never have known about. This saved IHT to a value many times greater than the solicitor’s fee, so he more than paid for himself. You can bet that HMRC wouldn’t have alerted me to this discount! The whole process went smoothly and HMRC were happy with no queries.
Likely to be this.http://manuals.voa.gov.uk/corporate/publications/M...
The TL:DR version.
http://manuals.voa.gov.uk/corporate/publications/m...
While it may be easier for you to use a solicitor , I have heard horror stories of the charges some of them make and it would be a good idea to agree costs before you begin. However, if you want to do it yourself, completing the IHT forms is not rocket science and there is a good helpline if you are in doubt about what to enter on the forms. You might also consider contacting the charities direct as they are likely to have experts who would help you through the process. Donations to charity should be taken off the IHT bill so depending on how the will is set out, there may be no IHT to pay.
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