For some pension funds, the definition of “dependent” might have changed in recent years and now any spouse and any child below a certain age is a “dependent” no matter their address or occupation.
Be aware that Land Registry may switch the registry from joint ownership to sole ownership (form DJP) but until they see Probate (or similar with forms such as RX3 and ST5) they will add a clause that restricts the sole owner’s ability to sell the house.
Value the estate.
Keep some evidence of house price, such as Zoopla screenshots or Estate Agent valuations.
Keep evidence of car value such as a WeBuyAnyCar valuation, or the sale value.
To complete IHT forms I needed a valuation from my wife’s investment broker. That took almost eight weeks (though normally four or less), but was worth waiting for because the format was matched to the IHT forms and showed the income correctly. Anyone who inherits the investments will need to know the value used for the IHT forms, because that is effectively the “purchase price” when they later sell the assets and consider CGT.
Although there is a simplified form for IHT, some pretty normal things such as putting money into a SIPP in the previous two years will mean that you need to do the full forms. They’re not difficult, just time consuming and take a bit of printer ink! I made sure to include IHT421 which is the form that HMRC check and forward to Probate. The correct sequence for IHT forms and probate application depends on a few things (whether IHT is zero, whether probate application is online, etc.) – so you need to look up what is the correct sequence for your situation. Keep a copy of the forms, not least to put with the survivor’s will as proof of inherited IHT allowances.
Even if you will be claiming spouse-exemption or direct-children-residence-exemption, you will still have to calculate everything for HMRC, and then at various stages of the forms you claim the exemption.
Apply for probate and grant of representation (for example £250 plus £1.50 per copy, but varies depending on value of estate) IF someone is going to need them.
Investment brokers need probate if the total value is above a certain sum (often 20-50k). Opening an Executor bank account often needs probate. Land Registry might want to see Probate. I used Probate to get Executor cheques reissued in my name.
https://www.moneysavingexpert.com/family/guide-to-probate/
Pay any inheritance tax due.
Pay off any debts and other tax owed.
Clear any restriction from the Land Registry.
Access the assets. This can take a bit of to-and-fro, even for a simple “spouse inherits all” scenario. Invested funds moved from the deceased’s account to their spouse’s account can suddenly appear unannounced, so if it’s important to know as soon as the funds move, you might need to check regularly.
If there are pension assets that will be distributed, the executors will inform the pension trustees who hopefully have an expression of wish on file. Distribute the estate.
AND FINALLY, LOOKING AHEAD:
The surviving spouse should make a new will & change their pension nomination forms. With the will, put a list of where assets are and maybe a copy of this document (with improvements!), and also add documents to prove unused IHT allowance so that it can be transferred when the survivor ultimately dies.
