IHT Query

[clarity9]

I have just found a life insurance/pension policy payable upon death, does this mean I can still complete the excepted estate forms as it still falls below IHT?

[Pezza54]

If the insurance policy pay out is added to the estate and the total estate is under £500k, it is still an excepted estate

[clarity9]

Thank you for the advise it is still under the 500K

[clarity9]

I have just been filling out the PA1P Probate application and it states address to send to is Harlow Essex.

You have advised me to send Estates Summary Form NIPF7 but that states send to Belfast ?

Am I getting this all wrong

[Pezza54]

Sorry, my mistake. Q7 on p18 of PA1P covers estate values. Disregard NIPF7

[clarity9]

Now I have completed the PA1P and stated that I am a daughter does that automatically take the allowance to 500k or is there any other forms that I have to send to receive the extra 175k

Sorry for all the question just want to get it right.

[Pezza54]

You may need to complete IHT 435 to claim the £175k RNRB
PA1P doesn't mention IHT 435 and doesn't provide for stating the value of the residence under Q7
All very confusing
You should telephone the Inheritance Tax Helpline to confirm. Their number is given on IHT 435

[clarity9]

I have had a quick look at this form and I get the impression that I have to fill out IHT 400 as well to get direct descendant allowance then so I cannot claim the estate as being excepted estate.

[Pezza54]

IHT 400 is a complicated form to work out IHT.
I would be surprised if it is required for an excepted estate.(under £500K) just to show that there is no IHT to pay
Phoning the helpline could save a lot of time filling in forms
If you do get an answer it would be great to let readers know

[clarity9]

I will phone them but reading the form I do get the impression it is a IHT 400 I think this is getting to complicated for me maybe have to bit the bullet and give to a solicitor to sort out.

[Pezza54]

You should also ask if it is easier to claim the transferable £325K NRB. Is info from the predeceased spouse's estate accounts required?

[sederunt]

£500k is not an excepted estate threshold.

If you need to claim residential nil rate band, it is not an excepted estate, and you need to submit a full IHT return - IHT400 etc.

So the obvious simpler route is to apply for probate and claim the transferrable nil rate band from the predeceasing spouse (where available). No IHT return needed.

[Pezza54]

I'm not sure that is right, but I could be wrong
IHT 400 Notes state that there must be a valid claim to transfer any unused nil rate band
IHT 402 is used to claim the TNRB
IHT 402 states that estate information should be obtained from the executor of the first spouse to be deceased

[clarity9]

I cannot go down that route of first spouse as I have nothing only a marriage certificate and death certificate.

The death was long ago in 1989.

[sederunt]

The longer ago the less likely there will be evidence. What's the worst that can happen?