The Inheritance Guide

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A simple way to unlock probate

Probate Forms & Inheritance Tax Forms

In the sixth video of our series we explain how you view and print your completed probate forms. You are now in a position to apply for probate.

Steps

Download and review each probate form and inheritance tax form generated. Check for any anomalies or areas that may need further input from you.

If you are presented with the PA1 probate form and the IHT205 probate form.

Send the PA1 probate form with the other papers necessary to apply for a grant to the Probate Registry.

At the same time send probate forms IHT205(2011), IH217 (if completed) and valuations and statements to the relevant probate registry. The probate registry will ask you to come for a short interview to confirm the information that you have provided in your application for probate, so that they can issue a Grant of Representation to you. The interview will also give you the opportunity to ask any questions you may have. Provided everything is satisfactory, the probate registry will send you the grant of probate and will send form IHT205(2006) and form IHT217 (if completed) to HMRC Trusts and Estates.

If you are presented with the IHT400 probate form

Send probate form PA1 together with the other papers necessary to apply for a grant to the Probate Registry.

If the system generates IHT400 probate forms then you will need to complete Form IHT421 yourself.

The probate form IHT421 is also a form of receipt and will be stamped and returned to the Personal Representatives.

You will need to request an Inheritance Tax reference number, which you will need to insert into the IHT forms displayed.

  • you can apply online for an IHT reference number from here
  • or alternatively use probate form IHT422
  • Check the probate forms displayed to see if the information has been inserted correctly. Once this has been done, print the forms and insert the IHT reference number obtained. Send probate form IHT400, all the schedules (probate forms) that have been created (including Schedule IHT421) and send to HMRC Trusts and Estates in Nottingham. If you are using DPS, send Schedule IHT423 to the bank or building society at the same time.

Once satisfied, HMRC Trusts and Estates will fill in their part of Schedule IHT421 and send it direct to the Probate Registry you have indicated on the Schedule IHT421.
You will also need to include the following documents when sending the probate forms:

  • Death certificate of the deceased
  • Any Powers of Attorney
  • Proof of identification
  • Details of Executors/Personal Representative
  • Details of Beneficiaries
  • Marriage/Divorce certificates
  • Death certificate of deceased and any named executors/beneficiaries
  • Will/Codicils
  • Any Deeds of Variation if the estate has been varied in any way and the variation results in either an increase or decrease in the amount of tax due
  • Any professional valuations
  • Copies of any pension or insurance polices

Inheritance Tax

Things to consider, but please remember - our system will do the working out for you:

Inheritance Tax Threshold

Inheritance Tax is paid on estates over £325,000 at a rate of 40%. The first £325,000 is known as the nil-rate band. This is the amount that can be passed on to beneficiaries without incurring Inheritance Tax. If, when a spouse or civil partner dies their full tax-free allowance is not utilised, the remainder will be passed on to the surviving partner and added to their tax-free allowance of £325,000.

Paying Inheritance Tax

You will not be able to obtain the Grant of Probate until any Inheritance Tax due is paid. Before you are able to pay Inheritance Tax you need to obtain an Inheritance Tax reference number. This should be done at least 3 weeks before you expect to pay your bill, and is needed in order to fill in the probate form IHT400. In order to receive a reference number visit the www.hmrc.gov.uk/inheritancetax/online.htm website. You will need to provide the following information about the deceased:

  • Full name
  • Date of death
  • Date of birth
  • National Insurance number
  • Payment of Inheritance Tax must be made within 6 months from the end of the month when the deceased died. Following this period interest will be charged on the outstanding amount. Payment of Inheritance Tax can be made using the Direct Payment Scheme. This is a scheme under which participating banks and building societies will release funds from the deceased’s accounts directly to HM Revenue & Customs to pay Inheritance Tax. Alternatively Inheritance Tax can be paid in ten equal annual installments in respect of the following assets:
    • Land and buildings, including agricultural land and property.
    • Certain shares and securities.
    • Net value of a business run for profit (this does not apply to the business assets).
    • However, if you sell the asset then you must pay the amount of tax due in full.

Finding the money to pay Inheritance Tax

Often there are no funds readily available to pay Inheritance Tax. This is because Inheritance Tax must be paid before applying for a Grant, but assets are only released upon receiving the Grant (it’s a bit of a catch 22). This can make finding the money to pay Inheritance Tax tricky. If there is enough money in the deceased’s bank account, building society or National Savings account to cover the cost it is possible to contact the relevant institution and arrange for HMRC to be paid directly or for a cheque to be sent to you made payable to HMRC. If there is not enough in the deceased’s bank account, it may be necessary to obtain a loan. It is advisable to speak to the bank to get advice on the best loan to suit this purpose. Any interest payable on this loan will be a liability of the estate of the deceased.


Apply for probate here

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