Grant of probate 'essential' for IHT allowance transfer

Grant of probate is crucial for individuals hoping to benefit from a transferral of inheritance tax (IHT) allowance, according to an expert accountant.

This is Money reports: "HMRC will insist on seeing [a] will and grant of probate before allowing the transfer," warning: "They take a hard line on this."

Under the provisions, making a will allows people to grant up to £325,000 worth of assets without enforced payment of inheritance tax, with any possessions past this threshold being charged at up to 40 per cent.

However, with proven grant of probate, married couples and those in a civil partnership can transfer the allowance between themselves, meaning upon the second death the sum of levy-free assets may be up to £650,000.

The specialist warns this requirement can rule many people out in practice, saying couples where one partner died a long time ago are most at risk of this.

A recent report in the Daily Telegraph revealed in some circumstances, HMRC might receive more of a person's estate than the benefactors they named when making a will, meaning seeking help from a wills and probate solicitor could be more important than ever.

Published by Kevin Round