Question on Probate
Discussion
Hi All
Just completing a probate application (well, Confirmation technically as it's a Scottish estate) and had a question about various estate values requested in the form.
Total estate is £700k and it is passing in its entirety to the surviving spouse i.e. this is an excepted estate and there is no inheritance tax to pay.
Value for confirmation is therefore £700k.
I also need to document the gross estate value for IHT, net value for IHT and net qualifying value.
Should the response to all 3 be 'zero' as no IHT is due, or should the gross and net be the £700k and the net qualifying value be zero?
Thanks in advance.
Just completing a probate application (well, Confirmation technically as it's a Scottish estate) and had a question about various estate values requested in the form.
Total estate is £700k and it is passing in its entirety to the surviving spouse i.e. this is an excepted estate and there is no inheritance tax to pay.
Value for confirmation is therefore £700k.
I also need to document the gross estate value for IHT, net value for IHT and net qualifying value.
Should the response to all 3 be 'zero' as no IHT is due, or should the gross and net be the £700k and the net qualifying value be zero?
Thanks in advance.
Broadly speaking, "gross" is the value of the estate; "net" is the value of the estate minus liabilities; and "qualifying" is the remainder of the net estate after the removal of IHT-exempt items (such as anything passed to a spouse).
In this case as everything is going to the spouse, and assuming no liabilities, then your second option is correct - £700k, £700k, £0.
https://www.kctrust.co.uk/partner-blog/hmcts-chang... is a good summary.
In this case as everything is going to the spouse, and assuming no liabilities, then your second option is correct - £700k, £700k, £0.
https://www.kctrust.co.uk/partner-blog/hmcts-chang... is a good summary.
deckster said:
Broadly speaking, "gross" is the value of the estate; "net" is the value of the estate minus liabilities; and "qualifying" is the remainder of the net estate after the removal of IHT-exempt items (such as anything passed to a spouse).
In this case as everything is going to the spouse, and assuming no liabilities, then your second option is correct - £700k, £700k, £0.
https://www.kctrust.co.uk/partner-blog/hmcts-chang... is a good summary.
Perfect….thanks DecksterIn this case as everything is going to the spouse, and assuming no liabilities, then your second option is correct - £700k, £700k, £0.
https://www.kctrust.co.uk/partner-blog/hmcts-chang... is a good summary.
That recent legislation does appear to have UK wide validity, but you will still need to navigate the arcane Scottish Confirmation process and it is mildly amusing to me that the official advice is to consult Currie/(Scobie): an ancient text book…
https://www.scotcourts.gov.uk/taking-action/dealin...
"Currie on Confirmation of Executors"
https://www.scotcourts.gov.uk/taking-action/dealin...
"Currie on Confirmation of Executors"
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