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Original poster

Doing probate - which inheritance tax for do I need?

51 replies

KatyMac · 24/05/2020 12:33

There should only be a small amount to pay but I got presented with several when I looked on .gov.uk

I am guessing any ISAs have to be cashed in rather than passed on to other people - looks like we will have lost quite a bit currently

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Original poster
KatyMac · 24/05/2020 21:41

anyone?

I imagine this whole thing is going to take for ever with Covid :(

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TheOnlyAletheia · 24/05/2020 22:01

How much is the taxable estate? If it’s below £325k then no tax is due but you’ll sill need to make a return (iht205)

Original poster
KatyMac · 24/05/2020 22:19

It's just over but because my dad died first I think it will count as being under

I found a fabulous form that is taking me through it number by number - respect to HMRC this is bloody amazing

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CMOTDibbler · 25/05/2020 18:20

Are you having to use paper forms because you are using nil rate band transfers? If so, you start with IHT400 and it tells you what others to fill in.
My dad died first, leaving everything to mum and I was able to do his iht and probate online and it was a doddle. Mums has to be done on the forms due to property disregard and band transfer and the worst bit is you can't save the filled out forms. But if you work through it, it doesn't seem that baf

Original poster
KatyMac · 25/05/2020 18:47

Well the website suggested I start online and then they will tell me if I have to do anything else (if I understood it properly)

Don't have a clue what to do with the isas so I'll have to ring them about those

My dad died 4 years ago and I did it on paper with my mum but this is me by myself

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CMOTDibbler · 25/05/2020 19:17

The ISAs, the building society/bank will give you a figure for probate.

If your mum had assets over £325,000 but your dad had left everything to her you can use his allowance too, but the paperwork is more

Original poster
KatyMac · 25/05/2020 19:43

That's what I think I worked out (about my dad and the extra)

The Isas are investments and I don't even know what company - so that will be fun....

I think we may have to do a super secret raid on the house to get all the paperwork I need

Tomorrow is the death certificate and estate agents

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CMOTDibbler · 25/05/2020 19:47

There's just so much to do isn't there. I have to be there for the house clearance company on Friday. And as I can't be in the house with them, I'll be spending the day sitting in the greenhouse

Original poster
KatyMac · 25/05/2020 20:24

Oh god poor you - when did it happen for you? It was Friday for me but I've know for nearly 5 weeks

Were you able to see them? We weren't - I can't tell you how that made/makes me feel

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CMOTDibbler · 25/05/2020 20:34

My dad died the first day of lockdown, mum died a month ago. It was (thankfully) sudden for dad, mum was ill for a week and I couldn't go and see her. Broke my heart

Original poster
KatyMac · 25/05/2020 20:42

Oh poor, poor you xxx hugs xxx

We were told she would die on 18th April and couldn't visit at all - she didn't accept our calls on Thursday which was heart breaking when we had the news on Friday

I can't imagine your pain

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CMOTDibbler · 26/05/2020 14:15

Thank you.

How are you getting on today with your paperwork gathering?

Original poster
KatyMac · 26/05/2020 14:20

Did Death cert
Planned funeral (such as it is) picked music and flowers
Sorted out flowers for her best friend who helped with everything and the nursing home

Finding out about the ISAs
Cashed in her Premium bonds

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Original poster
KatyMac · 26/05/2020 14:21

How are you today?

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CMOTDibbler · 26/05/2020 14:42

I'm all right. Had a good laugh about grabby SIL last night. My dad always said she'd be a PITA after they'd gone, and he was right!

Original poster
KatyMac · 26/05/2020 15:14

My brother keeps saying you're doing marvellously & is desperate that he doesn't have too many things sent to him as he lives on a boat!

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BadgerFace · 26/05/2020 20:54

Sorry for your loss. The ISAs don’t have to be cashed in, they can be passed to the beneficiaries as investments (usually). They will lose their ISA wrapper in the beneficiaries’ hands but you can then keep them and wait for the market to recover before you sell. Depending on their values and your own circumstances you may be able to ‘bed and ISA’ them where an investment broker can sell them and then rebuy within an ISA for you. This would then protect the increase in value from capital gains tax as and when you sell. Whether this is needed/beneficial depends on values, likely increase etc. There is no need to make a decision now on what to do, you have a lot to deal with. If you can speak to a financial adviser in due course they will be able to help you.

Original poster
KatyMac · 26/05/2020 21:06

Wow - trying to speak to my mum FA but he retired - we are getting the name of who my mum was passed on to - but she had never spoken to him

Thanks for your help

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Original poster
KatyMac · 26/05/2020 21:08

That means the money DD will be getting might be able to stay (or go) in an isa for her until she can afford to buy

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Ladyflip · 26/05/2020 21:15

Did your dad leave everything to your mum? If so, you need to claim his NRB, plus two rnrb so unless they were worth over a million they shouldn't have to pay.
Look at iht 205 and 217 initially then add rnrb if they are over £650k. But honestly, why not just employ a solicitor to do the job? They are specialists and would be able to do this for a reasonable fee reducing the need for you to stress and advise you properly about whether you need to pay iht.

BadgerFace · 26/05/2020 21:51

How old is DD? If 18+ then she can contribute £20k a year into an ISA. If under 18 then you can contribute £9k a year for her (but it’s then locked up until she is 18). The tax year runs to 5 April each year so there is plenty of time to decide how best to utilise the funds until DD will need them.

Original poster
KatyMac · 26/05/2020 22:05

I did my dad's and I have worked the thing about using his because together it's way less than £650

Of course I had my mum with me when I did my dad's

I was panicking a bit when I started the thread but @CMOTDibbler pointed me in the right direction and I am halfway through the form

Estate agents have been instructed to give me a price (3 so I'll prob be back here to sanity check those)

Car is valued and screenshot of auto trader with 2 prices and II have declared the mid point

@BadgerFace has set me right about the isa's

I'll clear the house and sell most on FB then get a house clearance in

I found HMRC very helpful last time as were probate, who walked me through the paper form - I can only imagine they will be as helpful this time

If I get stuck I'll have to pay someone I guess

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Original poster
KatyMac · 26/05/2020 22:06

She is 22 but I think she has missed the first time buyer isa

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User73688823 · 28/05/2020 12:53

@KatyMac from my experience there's a lot to be said for keeping control of the process and only calling in solicitors when you need them - it means you're not competing for time with all their other work and you don't end up chasing them for stuff you could have done yourself.

Props to HMRC, I'm sure they're not always perfect but I'd much rather deal with them than pretty much any other government (local or national) body!

Original poster
KatyMac · 28/05/2020 20:53

I had submitted my dad's within about 3 weeks (iirc) so I'll keep on trucking

Got the Death Certificates today

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