Hi -- it's known as spousal transfer, any unused NRB from your Father estate can be added to the full NRB when the executor handles your Mother's future affairs. This applies only to married people and registered civil partnerships.

As to the valuation, try to find a similar comparable property in the neighbourhood that has recently sold, then apply this figure as the valuation of the property. HMRC have records of what equivalent properties have sold for, so as long as your valuation is in general keeping with other similar properties in the same area there should be no problem. If you wish ask a local estate agent to give you a free valuation by telling them you may be interested in selling, there is no obligation to actually sell... don't sign anything...just tell them you're considering it.

Hi Conmankiller

Many thanks for your helpful advice last weekend. I'm afraid that I haven't had time to make further progress with the application until now. I did not realise that it was possible to carry over unused tax allowance from my dad's estate, so I'm very glad you told me about that!

With regard to putting a value in Box H, rather than go to exhaustive lengths to value the house and contents now, if I were to make a guestimate of its value, which proves to be have been significantly underestimated in the future when my mum dies, do you think that likely to cause me problems with HMRC?

Regards

: -- ) Complicated things aren't they. !

Okay --- Don't leave it blank, In box "H" it's asking you to declare the total value of exemptions, this is so HMRC know that what he has left is actually exempted. In this section include only HALF the estimated value of the house in "H" and HALF the value of any co-owned valuables.... possessions left to your spouse are exempt, so total it all up and put the combined figure in box H.

Also place a note next to box "H" to the effect, " Please note legal title of residential property held as "joint tenants" with spouse "...... IF that's the case. Check this fact first, but most property is usually owned this way between spouses.

I don't know the specifics of your case, but by filling in this form correctly it does not use any of your Father's nil rate banding (IHT personal allowance), this allows your Fathers full unused allowance to be claimed (spousal transfer) at a later date when your Mother passes away, if her estate should have grown in value to a position where she would be liable for IHT on her death, her executor would then be able to use both your Parents combined unused tax allowances before any liability for IHT.

Many thanks for your rapid and detailed response conmankiller.

You have eased my concern somewhat, and the link was useful. However, just to clarify exactly where my point of concern is:-

I know that I am obliged to fill in form PA1 - Probate Application Form. In the checklist at the back it states that you need to complete form IHT205. In Section 17 of this form it asks you to declare exemptions, and in the notes (IHT206) page 25 it gives examples and example 3. states "If the spouse........is to receive the household and personal goods and the deceased's home, list these two items in the box and write their total value in box H"

Am I to assume that this DOES NOT apply to property held in joint names? And if so I assume that I can just leave this blank on the form?

Thanks again!

Hi -- You may be filling in the wrong declaration form, the forms on which you'll need to record the valuation will differ, depending on the expected valuation amount. You complete a form IHT205 (C1 Scotland) for estates where you don't expect to have to pay Inheritance Tax (called 'excepted estates')

Also if the property was jointly owned by your Parents as "joint tenants" rather than "tenants in common" it passes automatically to your Mother, without becoming part of your Fathers estate at all and does not need a valuation, as it's a non-declarable asset.

The other assets have to be valued as a rough estimate (note you do not have to pay just give the value based on what you would realistically expect them to fetch at sale) of their true market value, but if the total is under the current IHT threshold (£312k) it's only a formality and will not attract any tax liability. However, it's a formality that is a necessary legal requirement before probate can be applied for and granted by the courts....which then gives legal control to the executor(s) for disposal etc.

If you are struggling then get a reputable house clearance firm in to give you an offer on the items in question, ask for a written estimate of what they are prepared offer, this will suffice as evidence towards their true reasonably expected value.

Don't forget any valuables that they both owned, you only need include your Dad's half the value on the valuation form, as the other half is already owned by your Mother, it's not her share of assets that you should be declaring. !

HMRC can, but rarely demand a professional valuation, except in cases where the valuation is just under the threshold and they have reason to believe items have been grossly undervalued, to evade any IHT liability that otherwise would have been due. !

I enclose a link that is useful for you below.

http://www.direct.gov.uk/en/Governmentcitizensandrights/Death/

BenefitsAndMoney/DG_10029819

I’m in the process of applying for probate on my dad’s (who died recently) estate. Specifically filling in HM Revenue and Customs form “Return of Estate Information”. I have just found that I need to provide a valuation of the house and contents, even though everything was in joint names with my mum who survives him and will continue to live in the house. Does anyone have any tips on how I go about this as I have NO idea of the value of the house OR the contents, which include some valuable antiques and pictures.

ALSO, as no Inheritance tax will be due, why do I have to provide this information now, AND could HM Revenue & Customs insist on a professional valuation?

Any help with this situation would be hugely appreciated.
Thanks in anticipation and advance!