Under current law the estate left by someone who dies is entitled to an amount known as the Inheritance Tax (IHT) Nil Rate Band. From April 2008 the Nil Rate Band is £312,000. Any value of the estate above this amount is subject to Inheritance Tax at 40%. Transfers of assets between spouses or civil partners are exempt from IHT.
From 9th October 2007 a surviving spouse or civil partner can apply to H M Revenue and Customs (HMRC) for the unused portion of the Nil Rate Band on the first death to be added to the surviving spouse or civil partner's own Nil Rate Band. This can reduce the amount of Inheritance Tax payable on the estate of the surviving spouse or civil partner.
To enable the claim to proceed HMRC require documentary evidence and details of the estate of the deceased spouse or civil partner.
As part of the services we offer, we can provide a Probate Pack containing all relevant documents for you to keep to ensure that any claim can easily be made in the future when the time comes.
HMRC suggest that the following information should be provided:-
National insurance number of the first to die
Death Certificate of the first to die
Marriage or civil partnership certificate for the couple
Copy of the Will of the first spouse or civil partner
Copy Grant of Representation of the first spouse or civil partner
Deed of Variation (if relevant)
Inheritance Tax account of the first spouse or civil partner
Valuation of assets passing to anyone other than the surviving spouse or civil partner on first death
Evidence to support the availability of relief where assets pass to anyone other than the surviving spouse or civil partner
Assets owned jointly with another person
Assets in which the first spouse had an interest in possession
Lifetime gifts made in the 7 years before death
Any property in which the first spouse had a reservation of benefit
Where the first spouse to die was over 75 details of any alternatively secured pension fund from when they received a pension