So, its perhaps best to think of it in descriptive rather than named terms! If an estate is or becomes liable to IHT, then the Revenue must be notified and they will want their slice of the action! Inheritance Tax is of course a hot topic and may change in the Autumn Statement on Weds? Back to you query! The question then (whether on applying for probate or after) is what is the value of the estate? Most things can be set in stone and so do not change. So a bank balance is what it is – ie the capital balance on the date of death, plus any uncredited accrued interest. A share holding is what it is – valued at close of business on the date of death on a ‘quarter up’ basis. However, perhaps the 3 big variables that can change things post probate include houses (as the value is subjective); business values (same reason as houses); and of course lets not forget assets being found that the executors knew nothing about when probate was applied for (quite common). But the value at date of death is still key. So take for example a house, and lets assume the property market is ‘hot’ around and beyond the date of death. The probate value will be the realistic price that would be achieved at date of death. But, the house may not sell for some time after that, and prices may be rising. Whilst this may not impact the IHT value of the house (if it can be demonstrated the value at date of death was correct, the IHT value will form the ‘base cost’ for CGT purposes and therefore may give rise to a Capital Gains Tax (CGT charge) instead!

Hope this helps.

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