As the title suggests, concerning a life interest trust created in the will, wherein the deceased’s husband is the immediate beneficiary of the house, and upon his death the deceased’s son will inherit. Is the value of the home to be deducted from the Gross value for probate? As per instructed it states “subtract values…and assets held in trust”
Gross value for probate -
“This is the total value of the deceased’s assets in their sole name.
To work this out, subtract the values of any joint assets passing to the other joint owner, foreign assets, all gifts and assets held in trust from the gross value of IHT.”
If the interest in the trust existed before the death, then, yes, it should eb subtracted.
However, if the trust arose on the death of the person for whose estate probate is being obtained, it would be incorrect to subtract the value of the trust.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals
Many thanks Paul, so to clarify the terms for holding the property in a trust for the deceased’s husband until his death were outlined in the will - therefore a trust which existed before death. Subtracting the value for probate is appropriate.
If the trust arose under the will of the deceased, the trust was not in existence until the death.
Are you looking at probate for the deceased or for the husband?
If for the deceased, the value of the property passes under the grant, and should not be subtracted.
If you are dealing with the husband’s estate, the property was already held in trust before his death and therefore does not pass under his grant, so that the value should be subtracted.
Paul Saunders FCIB TEP
Independent Trust Consultant
Providing support and advice to fellow professionals