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IHT404: Jointly owned assets

An IHT404 form is used to establish the value of an individual’s estate after they pass away, and it is payable by their beneficiaries. Use the IHT404 with form IHT400 to give details of all UK assets the deceased owned jointly with another person.
The IHT404 form is also known as the Account of Estate Information form, and it must be completed and submitted to HMRC within one year of the date of death. Failure to do so can result in penalties and interest charges.

In this article, we will explore the key elements of the IHT404 form, including who needs to complete it, what information it requires, and how to fill it out correctly.

Who Needs to Complete an IHT404 Form?

If you are the executor of an estate, or if you are acting on behalf of the executor, then you will need to complete the IHT404 form. The executor is the person who is responsible for administering the estate of the deceased, including paying any outstanding debts and distributing the assets to the beneficiaries.

If there is no executor named in the deceased’s will, then an administrator will be appointed by the court to carry out these duties. The administrator will also be responsible for completing the IHT404 form.

What Information is Required on an IHT404 Form?

The IHT404 form requires detailed information about the assets and liabilities of the estate, including:

Assets
Property: This includes any real estate owned by the deceased, such as a house or land.
Investments: This includes stocks, shares, bonds, and other investments that the deceased owned.
Personal possessions: This includes any valuable items owned by the deceased, such as artwork, antiques, and jewellery.
Bank accounts: This includes any bank accounts, including savings accounts, checking accounts, and other types of accounts.
Other assets: This includes any other assets that the deceased owned, such as cars, boats, and other personal property.

Liabilities
Debts: This includes any outstanding debts owed by the deceased, such as credit card debt, loans, and mortgages.
Funeral expenses: This includes any expenses related to the funeral and burial of the deceased.

Other Information
Beneficiaries: This includes the names and addresses of the beneficiaries who will receive a portion of the estate.
Will: This includes a copy of the deceased’s will, if available.
Probate: This includes information about the probate process, including the date that probate was granted and the name of the probate court.

How to Fill Out an IHT404 Form

Filling out an IHT404 form can be a complex and time-consuming process, but it is essential for ensuring that the correct amount of inheritance tax is paid. Here are the steps involved in completing the form:

  • Gather Information
    The first step in completing the IHT404 form is to gather all of the necessary information about the assets and liabilities of the estate. This may require contacting banks, investment firms, and other financial institutions to obtain statements and other documentation.
  • Complete the Form
    The IHT404 form is divided into several sections, each of which requires specific information about the estate. It is important to carefully read each section and provide accurate and complete information.
  • Calculate the Inheritance Tax
    Once all of the information has been entered into the form, it is necessary to calculate the amount of inheritance tax that is owed. This can be a complicated process, as there are many factors that can affect the final amount, such as the value of the estate and the relationship between the deceased and the beneficiaries.
  • Submit the Form
    Once the IHT404 form has Once the IHT404 form has been completed, it must be submitted to HMRC within one year of the date of death. The form can be submitted online or by mail, and it is important to ensure that it is submitted by the deadline to avoid penalties and interest charges.

It is also important to note that the executor or administrator of the estate is responsible for paying any inheritance tax that is owed. This may require selling assets or obtaining a loan to cover the tax liability, and it is important to plan ahead to ensure that there are sufficient funds to pay the tax.

In addition to the IHT404 form, there are other forms and documents that may be required when administering an estate, such as the Grant of Probate or Letters of Administration. These documents give the executor or administrator the legal authority to manage the estate and distribute the assets to the beneficiaries.

It is also important to seek professional advice when dealing with the administration of an estate and the payment of inheritance tax.

As an overview, the IHT404 form is an essential document that must be completed when administering an estate and paying inheritance tax. It requires detailed information about the assets and liabilities of the estate, and it must be submitted to HMRC within one year of the date of death. Filling out the form can be a complex and time-consuming process, but it is important to ensure that it is completed accurately and submitted on time to avoid penalties and interest charges. Seeking professional advice can also be helpful in navigating the estate administration process and ensuring that all legal and tax requirements are met.

Are you looking for help to complete the IHT400 form?  Give DIY Probate a call on 0116 2795044, and we’ll be happy to help.

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