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IHT419 – Debts owed by the deceased

The IHT419 form is processed when an Estator has included a deduction on the form IHT400 for any loans, overdrafts, or money spent on behalf of the deceased that is to be repaid out of the estate.

When someone dies, their estate may be subject to Inheritance Tax, and the executors or administrators of the estate will need to complete an IHT419 form to report the details of the estate to HM Revenue & Customs (HMRC). In this article, we will guide you through the process of completing an IHT419 form, step-by-step.

Step 1: Gather the necessary information

Before you start filling in the IHT419 form, you should gather all the necessary information about the deceased person’s estate. This includes details of any assets that they owned, such as property, investments, and personal possessions, as well as any debts or liabilities that they had. You will also need to know the value of each asset at the date of death, as well as any gifts that the deceased person made in the seven years before their death.

Step 2: Complete Section 1 of the form

Section 1 of the IHT419 form is where you provide details about the deceased person, including their name, date of birth, and date of death. You will also need to provide their National Insurance number, if known, and their last known address.

Step 3: Complete Section 2 of the form

In Section 2 of the form, you will need to provide details of the deceased person’s assets, including any property, bank accounts, investments, and personal possessions. For each asset, you will need to provide the value at the date of death, as well as any outstanding mortgages or other debts associated with the asset.

Step 4: Complete Section 3 of the form

Section 3 of the IHT419 form is where you provide details of any gifts that the deceased person made in the seven years before their death. Gifts can include money, property, or other assets that were given away by the deceased person. You will need to provide details of the value of each gift, as well as the date it was made and the name of the recipient.

Step 5: Complete Section 4 of the form

In Section 4 of the form, you will need to provide details of any debts or liabilities that the deceased person had, including any outstanding loans, mortgages, or credit card debts. You will also need to provide details of any funeral expenses or other expenses associated with the estate.

Step 6: Complete Section 5 of the form

Section 5 of the IHT419 form is where you calculate the total value of the estate, taking into account all the assets, gifts, and debts associated with the estate. You will need to provide a detailed breakdown of the calculations, showing how you arrived at the final figure.

Step 7: Complete Section 6 of the form

Section 6 of the form is where you calculate the amount of Inheritance Tax that is payable on the estate. You will need to apply the relevant exemptions and reliefs to the estate, such as the nil-rate band and any exemptions for gifts to charity or for business purposes. You will also need to calculate any additional tax due on gifts made in the seven years before death.

Step 8: Complete Section 7 of the form

In Section 7 of the IHT419 form, you will need to provide details of any trustees, beneficiaries, or other parties involved in the administration of the estate. You will also need to provide details of any trusts that the deceased person had set up before their death.

Step 9 Complete Section 8 of the form

Section 8 of the IHT419 form is where you provide details of the executors or administrators of the estate. This includes their names, addresses, and contact details, as well as their relationship to the deceased person. You will also need to provide details of any solicitors or other professionals who are involved in the administration of the estate.

Step 10: Complete Section 9 of the form

Section 9 of the form is where you provide any additional information or comments that you think are relevant to the administration of the estate. This could include details of any disputes or disagreements between the beneficiaries, or any unusual circumstances that may affect the distribution of the estate.

Step 11: Check and submit the form

Once you have completed all the sections of the IHT419 form, you should check it carefully to make sure that all the information is accurate and complete. You should also make sure that you have included all the necessary supporting documents, such as valuations of assets and copies of the deceased person’s will.

Once you have completed the forms, you will need to submit them to HM Revenue & Customs. If you are submitting the forms by post, make sure you send them to the correct address and include any necessary attachments.

It is important to submit the IHT419 form as soon as possible after the death of the person, as there are strict deadlines for paying Inheritance Tax. If you do not submit the form on time, you may be liable to pay penalties and interest on any tax that is due.

In conclusion, completing an IHT419 form can be a complex and time-consuming process, but it is essential if you are responsible for administering the estate of a deceased person. By following the steps outlined in this article, you should be able to complete the form accurately and efficiently, ensuring that the estate is administered in accordance with the law and the wishes of the deceased person.

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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