IHT and Probate

[Sunshineonleaf]

I'm helping a friend who was recently widowed. Her DH left a straightforward will leaving everything to her and the house is a joint tenancy.
I thought that there would be no inheritance tax in such a case and yet it seems she has to value the estate for IHT purposes before she can get probate.
Am I right in my assumptions?
If so how accurate does the valuation have to be?

The house will not form part of the estate for IHT purposes. The rest of the estate needs to be valued but may be lower than IHT threshold and if so no tax would be payable.

No IHT is payable because she was married to him.

I thought no IHT would be due if the whole estate went to the spouse. So why you have to get it valued?
The government website seems to imply that you have to include the property in the valuation even though it doesn't form part of the estate for IHT.
This is all just to get as far as probate.

Not sure if this is the same thing

My dad died two weeks ago so not very far in inquiries but the solicitor I spoke with said that mum has to fill in a short inheritance tax form. It's also the case that the house was in joint name and everything goes to mum. So there's not meant to be any tax to pay, but still have to fill in forms.

The solicitor asked me for an estimated value of the house as well.

Here's the link you need -

www.gov.uk/inheritance-tax

Or call

HMRC Probate and Inheritance Tax Helpline on 0300 123 1072

Thanks for the link.

I just wanted to know why you still have to have it valued when there will be no IHT to pay? It's a huge amount of effort to go to (getting property and investments valued), when there will be nothing to pay because it all goes to the spouse. Or am I missing something?

The probate value of the assets will be needed for CGT purposes when your friend sells them. The other answer, of course, is that the bureaucracy wants its forms filling in!

Although the house passes to your friend automatically as it was held under a joint tenancy it still needs to be valued and declared.

There are a number of reasons why the full estate has to be valued. Most are irrelevant for most people, but sometimes, it becomes relevant on second death. But, regardless of the reasons, the law says it has to be done - that's reason enough. My first tax lecturer in college said in his first lesson - don't think "why" tax law is the way it is - it'll drive you mad - what you need to know is what the law says has to be done - a lot of it doesn't actually have logical reason!

Badbadbunny As a retired civil servant I should have realised!
Yes it will be a factor on the second death. I guess HMRC are planning ahead.

Quick question - why would it be a factor on second death? Base cost for CGT is uplifted on death, and the only thing HMRC need to know is the value of the estate.