TomB

The guidance notes for IHT direct payments advice that if banks are instructed to release assets from the deceased account for IHT that one should send the executor should send the IHT 400 form at the same time. What if the banks pay the money to the IHT reference number but the form comes later – we need some more time to clarify some more items but need to meet the deadline of 6 month for payment.

For the flat abroad (foreign assets) the 3 market valuations that we have gathered from visiting real estate agents all show a span - e.g. they wrote market price=130.000, selling offer price=140.000 and comment that one should always add some percent when selling, for negotiation. Do you think HMCR will accept to put the lower market price or do they except that we use the middle of that range for IHT forms?

Shortly after death our relative received about 1.800 Euro foreign investment earnings/interest for investment funds for a period in lifetime, paid out annually, automatically reinvesting in the investment depot of the bank. We are above the 2000 Pound allowance for foreign income. Shall I put that in the IHT forms as something owed to the estate? But where? Should it be calculated as debts to the estate? In the IHT 417 Foreign Asset Form there is only liabilities to be deducted from foreign assets but not debts owed to the estate. Or is this something to consider later as capital gains for the time after death, not having to be deducted from estate for IHT?

In the case of cremation: I have read the HMCR guidance but am still wondering if the following costs are deductible from IHT: - Transport to the seaside for the scattering of ashes in a minibus - Hire of a chapel on the day of the scattering of ashes - Invitations for mourners / cards and stamps - Urn for the transport of the ashes and vessel for the scattering of the ashes - What if the urn and post were purchased abroad in a different currency? - Refreshments: Does this include a snack or just drinks? (I understood that a subsequent meal in a restaurant with the mourners is not tax deductible) - Purchased items with or without VAT? Thank you very much for your help!

Form IHT 405 Houses asks if we intend to sell properties within 12 months of date of death. Is it a must to fill this out and stick to the answer? We think we will not manage within 12 months as it took us almost 6 months to clarify the estate and debts and according to HMCR it takes 5 months on average until probate can be approved. What are the implications if we answer no? Is it a problem if nevertheless try to sell asp. after probate. Are there exceptions to have more than 12 month time? And what might be the advantages/disadvantages to include it in probate time? Thank you!

For a family member that died I am the personal representative. I found out that we need to declare pension income from abroad for some years back as well as paying back overpaid benefits out of the estate. I wonder if we must pay the amount only with interest penalties, or also penalties for submitting late and paying late? Is there a similar calculator like the late payment self-assessment tax calculator for this? And how far do we need to go back? There are gaps in the statements so we can only estimate some of the amounts and might only get missing statements from abroad after probate. But we must find out the debt sum for the inheritance tax sum. Help is very appreciated - thank you!