intestacy, transferable iht allowance and joint assets?

A question about : intestacy, transferable iht allowance and joint assets?

My Dad died a in 2011 without leaving a will, we never got probate done, as we thought it wasn't needed. Recently my Mum died, and I'm just working out her probate.

The total estate when my Dad died was probably about Ј500k, but it was all jointly owned with my Mum, a house, shares, and bank accounts.

The total estate now is worth about Ј600k at most, I can't work out what the nil rate band would be, did the jointly owned assets count against my Dads nil rate band when he died?

Best answers:

• If your parents were married, then the transfers to your Mum will not count, and the total nil rate band will be Ј650k.
• Yes, they were married, and I forgot to say were joint tenants as home owners.
• another question, will I need to do probate, and fill in the forms for Dad as well as Mum? I guess I need to ask if I have to get 2 valuations for everything for each date of death?
• The IHT forms tell you how to claim the transferable nil rate band.
  HMRC web site also has information(google with HMRC at the front of the searches)
  If you have sufficient evidence for HMRC to agree the transfer then you may get away without processing your dads estate through a grant.
• We didn't have to get probate when Mum died because almost everything was jointly owned with Dad so it all automatically became his.
• There is nothing said so far that would require LOA for the first death.
  HMRC might want a capital return to demonstrate the passing of all assets to the joint owner and spouse exemption/transferable nil rate band.
  Accurate valuations at first death should not be needed as there would be no impact on tax.
  There may have been a need to do income tax returns for first death.
• If I've underestimated the values a bit, I've just realized I might have, and it's, say 700k now and was 550K when my Dad died? Did my Mum still inherit all joint assets on my Dads death?
• You would need to know what the laws of intestacy said when Dad died (they have recently changed).
  Can I suggest that if you are struggling, with an estate that size, you might benefit from some professional advice from a solicitor or accountant who specialises in estates. Because if the estate is Ј700k, then regardless of what happened when Dad died, there is going to be some IHT due. If your mum did not make a will, there may not be anything you can do about that, but a professional would advise you if you can. If Mum DID make a will, then there may very well be things you could do to reduce or avoid the IHT, if all the beneficiaries affected agree.
  Note that it may not increase the amount the beneficiaries receive, but if I was dealing with an estate on the margins of IHT I'd probably rather make charitable donations to reduce what HMRC received than hand over the full amount due.
• There were no ISAs, I'm sure, my Mum had premium bonds so that doesn't matter. My Dad had unit trusts, but I'm sure I've seen my Mums name on some of those.