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  • FIRST POST
    • loulou41
    • By loulou41 13th Sep 17, 6:49 PM
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    loulou41
    Elderly executors
    • #1
    • 13th Sep 17, 6:49 PM
    Elderly executors 13th Sep 17 at 6:49 PM
    I am in the process of making new wills. We are getting on hubby is 76 and I am 69. I just want some advice Will it be better if I name my daughter and son as executors? Or I could put his name what if he loses mental capacity and cannot act? Even now with his full faculty he will need help. He is one of those who just sit down and let the other half get on with the finances. He was not like that but since modern technology he said it is too complicated for his old brain. Will only browse reading newspapers. Any advice appreciated.
Page 1
    • Savvy_Sue
    • By Savvy_Sue 13th Sep 17, 6:57 PM
    • 37,823 Posts
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    Savvy_Sue
    • #2
    • 13th Sep 17, 6:57 PM
    • #2
    • 13th Sep 17, 6:57 PM
    Well, if he would be offended by not being named as executor then put him, and your son and daughter. He can stand down if he doesn't want to be involved, or go for 'power reserved'.
    Still knitting!
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    • Keep pedalling
    • By Keep pedalling 13th Sep 17, 7:01 PM
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    Keep pedalling
    • #3
    • 13th Sep 17, 7:01 PM
    • #3
    • 13th Sep 17, 7:01 PM
    Putting him and both your children as executors will just about every situation.

    That is what we have done with our wills.
    • loulou41
    • By loulou41 13th Sep 17, 8:01 PM
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    loulou41
    • #4
    • 13th Sep 17, 8:01 PM
    • #4
    • 13th Sep 17, 8:01 PM
    Thanks I will do that do not want to offend him. Hubby and the two adult children.
    • getmore4less
    • By getmore4less 13th Sep 17, 9:11 PM
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    getmore4less
    • #5
    • 13th Sep 17, 9:11 PM
    • #5
    • 13th Sep 17, 9:11 PM
    Good practice for the kids to get involved on first death where one parent remains and might still have a clue about the finances.

    on second death they are on their own.

    if you want to make the process easier all round do a practice run starting with PA1 and IHT205 and document the information needed.
    • eddyinfreehold
    • By eddyinfreehold 14th Sep 17, 12:24 AM
    • 107 Posts
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    eddyinfreehold
    • #6
    • 14th Sep 17, 12:24 AM
    • #6
    • 14th Sep 17, 12:24 AM
    We are in our late 50s/early 60s . We have 3 children in their early 20s . In recent years they have experienced the death of their grandparents and the grieving process, the technicalities of funerals/memorials and the law etc. It prompted us to update our wills. 2 of the 3 children are capable of being executors, one is not owing to a disability. The four of us have discussed our financial situation clearly. Either I or my wife will inherit everything and carry on, but in the event of the second death or a joint death they will become the executors and beneficeries and will operate a trust for their sibling. It is good to discuss this sort of thing openly and to discuss tax plans, sums of money, assets etc. If my father had done that and not kept his wealth in a cardboard box and locked the door when he checked it, then we would not have been liable for Inheritance Tax he erroneously believed was not due. Personal wealth and public knowledge of ones salary being kept very private is a very British thing it strikes me, and it very often ends in tears later. Let the youngsters have that responsibility, they are 30 times quicker to grasp the problems, carry less burden of family guilt, and are well up for it. There is a hell of a lot to be said for the youth of today.
    • Margot123
    • By Margot123 14th Sep 17, 8:24 AM
    • 217 Posts
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    Margot123
    • #7
    • 14th Sep 17, 8:24 AM
    • #7
    • 14th Sep 17, 8:24 AM
    From another perspective, I am personally involved in the administration of a nearest-and-dearest's estate, along with my Brother.
    The one thing the testator fails to consider is the emotional effect on those appointed as executors. My Brother and I are now in a complex legal battle whereby he has laid siege to the estate property. We were once on very good terms but money changes people.
    I so wish that the testator had appointed a solicitor. Yes, it would have cost a lot more but the stress is just about draining me to the point that I will have to give in and forget about any inheritance at all.
    • Keep pedalling
    • By Keep pedalling 14th Sep 17, 9:00 AM
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    Keep pedalling
    • #8
    • 14th Sep 17, 9:00 AM
    • #8
    • 14th Sep 17, 9:00 AM
    From another perspective, I am personally involved in the administration of a nearest-and-dearest's estate, along with my Brother.
    The one thing the testator fails to consider is the emotional effect on those appointed as executors. My Brother and I are now in a complex legal battle whereby he has laid siege to the estate property. We were once on very good terms but money changes people.
    I so wish that the testator had appointed a solicitor. Yes, it would have cost a lot more but the stress is just about draining me to the point that I will have to give in and forget about any inheritance at all.
    Originally posted by Margot123
    I think in reality those situations are quite rare, and can be avoided by explicit wording in the will, e.g. Stating that property must be sold and the proceeds split. I would certainly not appoint a bankrupt child as an executor that is simply asking for trouble.
    • loulou41
    • By loulou41 16th Sep 17, 6:13 PM
    • 2,628 Posts
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    loulou41
    • #9
    • 16th Sep 17, 6:13 PM
    • #9
    • 16th Sep 17, 6:13 PM
    Good practice for the kids to get involved on first death where one parent remains and might still have a clue about the finances.

    on second death they are on their own.

    if you want to make the process easier all round do a practice run starting with PA1 and IHT205 and document the information needed.
    Originally posted by getmore4less
    Thanks for your good advice. Just had a look at the forms IHT205 very confused. I do not know how I can put a value of house contents and personal belongings as they will be fit to be dumped. Also I gave an allowance of £1000 out of income for my grandson 's future each month. My sister has been poorlly and needed surgery and she has to pay as she lives abroad where you have to pay for your medical bills. I gave £4000 to help with the costs and for inheritance purpose I will have to declare this and I cannot see how she can repay .I do understand the 7 yrs rule does this mean I have to declare any gifts I have made within 7 yrs. I do buy expensive gift for son over 1k I do not need to declare all this. I was just looking at the form and find it hard to understand and fill. My half share of the house will be in a trust when I die not sure what to put on the form. I guess will advise daughter to get a solicitor to handle it. I do not think I will be over 325k as the house is only worth about 300k . Trying to do practice run and it is giving me headache. Hope I go before hubby.
    • Keep pedalling
    • By Keep pedalling 16th Sep 17, 7:13 PM
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    Keep pedalling
    Contents is fairly simple, just put a nominal value on the lot.

    Gifting requires good record keeping. Gifts out of income are exempt, but you need to be careful with those, because you can't for instance gift £12k from income and in the same year draw £20k from savings to go on a world cruise or buy a new car and claim exemption on the gift because it is not surplus income. You could, under those circumstances, however claim £3k from your annual gift allowance (£6k for a couple).
    • Yorkshireman99
    • By Yorkshireman99 16th Sep 17, 7:28 PM
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    Yorkshireman99
    As executor you can still appoint a solicitor to take of the job.
    • loulou41
    • By loulou41 17th Sep 17, 8:47 AM
    • 2,628 Posts
    • 170 Thanks
    loulou41
    Contents is fairly simple, just put a nominal value on the lot.

    Gifting requires good record keeping. Gifts out of income are exempt, but you need to be careful with those, because you can't for instance gift £12k from income and in the same year draw £20k from savings to go on a world cruise or buy a new car and claim exemption on the gift because it is not surplus income. You could, under those circumstances, however claim £3k from your annual gift allowance (£6k for a couple).
    Originally posted by Keep pedalling
    Does this scenario make sense to anybody. Scenario for elderly couple. Property worth £300,000 tenants in common with life interest trust for surviving spouse beneficiaries two adults children. Annual gifts to grandchild £12,000 and £2000 for adult children. Smaller gifts of £250 to families. Need to know the following pl.

    Husband died his £150,000 share of property go in trust . Will this £150,000 be included for hit for assessment?

    He gifted £12000 annually to grandson out of income. £2000. to adult children. Total of £14,000 a year. His nil band rate is £325,000. Scenario is half share of house is £150,000 , gifts of £14,000 a year for 7 yrs £98,000. He was allowed £3000 a year for 7 yrs that's £21000. So if I understand how it works it will 150k+98+=248k - 21k=227. I have included the 14k out of income to be on the safe side. So he can pass to surviving spouse his nil band rate of 98k. Hope somebody understand my post and it is not too confusing . Thanks
    • loulou41
    • By loulou41 17th Sep 17, 8:56 AM
    • 2,628 Posts
    • 170 Thanks
    loulou41
    As executor you can still appoint a solicitor to take of the job.
    Originally posted by Yorkshireman99
    It will be a very straight forward property trust wills. How much does a solicitor charge? Everything is documented and bank affairs in order and how to access infor might only need help to fill iht205. Just doing a practice run for myself and daughter as somebody suggested. As I have got plenty free time I am trying to get as much infor on this subject it is an issue families are not very keen to discuss is there a website where I could access some forms to print for record keeping. Thanks
    • Keep pedalling
    • By Keep pedalling 17th Sep 17, 9:33 AM
    • 3,951 Posts
    • 4,309 Thanks
    Keep pedalling
    Does this scenario make sense to anybody. Scenario for elderly couple. Property worth £300,000 tenants in common with life interest trust for surviving spouse beneficiaries two adults children. Annual gifts to grandchild £12,000 and £2000 for adult children. Smaller gifts of £250 to families. Need to know the following pl.

    Husband died his £150,000 share of property go in trust . Will this £150,000 be included for hit for assessment?

    He gifted £12000 annually to grandson out of income. £2000. to adult children. Total of £14,000 a year. His nil band rate is £325,000. Scenario is half share of house is £150,000 , gifts of £14,000 a year for 7 yrs £98,000. He was allowed £3000 a year for 7 yrs that's £21000. So if I understand how it works it will 150k+98+=248k - 21k=227. I have included the 14k out of income to be on the safe side. So he can pass to surviving spouse his nil band rate of 98k. Hope somebody understand my post and it is not too confusing . Thanks
    Originally posted by loulou41
    What about his savings? surely someone giving that much away, had something put by for emergencies at least. On the other hand you have not included his main residence nil rate band in your calculations.

    https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band
    • loulou41
    • By loulou41 17th Sep 17, 10:07 AM
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    loulou41
    What about his savings? surely someone giving that much away, had something put by for emergencies at least. On the other hand you have not included his main residence nil rate band in your calculations.

    https://www.gov.uk/government/publications/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band/inheritance-tax-main-residence-nil-rate-band-and-the-existing-nil-rate-band
    Originally posted by Keep pedalling
    About 50k in shares,bonds and savings. He is not keeping more that than and any surplus income from two pensions go to adult children and grandson. He likes to live this way no expensive holidays, expensive treats so that the extra income go to grandchild. He has two options splashing the extra income on himself or help his grandchild's future. The residence nil band rate will be 50k for his share. Even if he declares everything he will not go above 375k. Thanks for your advice.
    • Yorkshireman99
    • By Yorkshireman99 17th Sep 17, 12:07 PM
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    Yorkshireman99
    About 50k in shares,bonds and savings. He is not keeping more that than and any surplus income from two pensions go to adult children and grandson. He likes to live this way no expensive holidays, expensive treats so that the extra income go to grandchild. He has two options splashing the extra income on himself or help his grandchild's future. The residence nil band rate will be 50k for his share. Even if he declares everything he will not go above 375k. Thanks for your advice.
    Originally posted by loulou41
    It is important that accurate records are kept of the gifts so that life is made easier for the executors.
    • getmore4less
    • By getmore4less 17th Sep 17, 12:21 PM
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    getmore4less
    THe real issue with all the non exempot gifts is they use up a bit of nil rate band, if everything else goes to spouse(including the stuff in the life interest trust) then it gets the spouse exemption and the spouse get any unused nil rate band to go with it the value of the house in the trust will be included in the second death.

    the current joint nil rate band with residential(£100k EACH) is £850k and will grow to £1million as the residential rises each April.

    If the total of current assets and non exempt gift in the last 7 years are below this it becomes a paper exercise to make sure everything is within the limits

    Keep working through the IHT 205 read the notes and also read all the IHT400 pages and notes.

    it will become clearer with some time and you will probably end up with a pair of fairly simple estates to deal with.
    Last edited by getmore4less; 17-09-2017 at 12:24 PM.
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