Inheritance Tax Question

[PurpleFlower1983]

Hi everyone,

We are going to get proper legal advice regarding this but wondered if anyone could help in the meantime.

An elderly relative intends to leave her estate to her three nephews. The estate is likely to be worth around £700000 once the property is sold.

Her husband died 20 years ago and they had shared assets so all transferred to her.

Does she still qualify to transfer her husband’s tax free allowance to her or is it too long ago?

Thanks.

Yes she does. It is possible for anyone dying on or after 9th October 2007 to transfer the unused nil-rate band regardless of when the first spouse died.

Thank you. I read somewhere that you have to have a copy of his will and proof of probate (although there was no probate as it went to his wife).

You still have to do probate even if it all goes to the spouse.
You can order copies of probates online.

You don’t always have to do probate for a spousal death, if everything was transferred into joint accounts before the death and on how the house is owned. We only had to do it because of one ISA my father hadn’t transferred before he died, otherwise it wouldn’t have been necessary.

I believe everything was in joint names before he died.

Yes you apply to have the spousal allowance at time of first death to be transferred. If there is no will and no probate applied for, I’m guessing that you will need to show value of estate at the time somehow. House valuation should be fairly easy, bank statements etc should be available - you might need to do a bit of finding documents and calculating. Worth checking probate and will registry first in case there was probate and it’s been forgotten. I always find HMRC really helpful by phone - don’t be afraid to call and ask them for advice.

@madrush I believe you can do it later as long as none of the allowance was used at the time. Fingers crossed she will be able to do it.

Sorry yes, you do it at point of dealing with second estate. It should read: you apply to have “the spousal allowance at time of first death” to be transferred at time of second death.

@madrush Thanks that makes sense.