Probate and IHT query?

[Ampharete1999]

Hi, hoping someone can help please? Trying to complete IHT forms and come across complication and just so stuck!

Parent-in-law 1 died 3 years ago. Property was held as joint tenants with PIL2 so passed by survivorship. No IHT liability and probate Not needed.

18 months later the Will was varied to split property left by PIL1 into 2 equal halves between PIL2 and SIL. Therefore entire property asset held 50% by PIL2 and 50% in trust by PIL2 and SIL.

PIL2 has recently died and we’re at stage of selling house. Dealing with inheritance tax application before applying for grant of probate. If it makes a difference no tax is payable.

The confusing thing is completing the form IHT402 to transfer the unused nil rate band. Because the Will was varied should we have completed inheritance tax application for PIL1? And a grant of probate for PIL1? The solicitor didn’t mention we needed to at the time.

Panicking a bit as this will really hold things up. Can anyone advise please? Thank you so much x

No requirement for a grant of probate as the property passed by survivorship and a deed of variation doesn’t alter this - it merely changes the IHT position.

Provided the quarter share of the house passing to SIL didn’t exceed the nil rate band the estate would still have been excepted so no requirement to complete an IHT400 at that time - you now however have to complete the IHT402 taking into account the deed of variation on the first death and send HMRC a copy of it.

Thank you! This is now making more sense. I appreciate your help. The IHT forms are so complicated!

No problem!