IHT - how are students supposed to pay?

dontknowwhatimdoing

Dear Scooter7

My sympathy lies entirely with you over this matter.

Emotion jolly well does come into it.

As my username implies, I know little about the legal world, but I DO know how rotten times can be. And how alone one can feel, even if one is not literally alone.

Best wishes

dontknowwhatimdoing XXX

Fairwinds

When did your mother die?

My mum died Dec 07 and we were able to use my dads allowance, who died 20 years earlier. It infuriated me that I had to tell the solicitor about this and still pay him £5k

monkey_spank

GordonD wrote:

My mum died Dec 07 and we were able to use my dads allowance, who died 20 years earlier. It infuriated me that I had to tell the solicitor about this and still pay him £5k

I would have sent him a bill of my own for 6k for the training provided. There really are some fantastically incompetent solicitors around operating in this area of law.

John_Pierpoint

sdooley wrote: »

People in £800K houses tend to have some cash on hand to meet tax when they die

Don't you believe it, some of them are all fur coat and no nickers, cash is king at the moment and the Revenue expect to be paid in cash - not share options.

Scooter7

Thanks for your input everyone, and thank you dontknowwhatimdoing, it seemed at time that the only professionals concerned in this matter that were able to add empathy to their work were the undertakers and the vicar!

Its funny how some of these 'specialist' solicitors can be so useless sometimes (please understand I don't want to tar all with the same brush though). The solictors acting as executors didnt even know IHT could be paid in instalments, and told me I had to raise all funds immediately (among other errors). Then they applied to the wrong Registry Office (for my address) for a copy of my dad's death certificate, had to query if he was actually dead, and asked me to obtain a copy for them as they couldn't get one! In the end I took legal advice against the executing solicitors from another solicitor, who helped me threaten legal action and managed to cap the charges at just over £6k (they were still escalating at this point).

My mum died in Sept 05, and my dad in Dec 01. I don't know if my dad's allowance could have been used? This certainly wasn't raised by the solicitors at the time. Are these dates prior to the ability to do this?

localhero

Scooter7 wrote:

Its funny how some of these 'specialist' solicitors can be so useless sometimes (please understand I don't want to tar all with the same brush though). The solictors acting as executors didnt even know IHT could be paid in instalments, and told me I had to raise all funds immediately (among other errors). Then they applied to the wrong Registry Office (for my address) for a copy of my dad's death certificate, had to query if he was actually dead, and asked me to obtain a copy for them as they couldn't get one! In the end I took legal advice against the executing solicitors from another solicitor, who helped me threaten legal action and managed to cap the charges at just over £6k (they were still escalating at this point).

Most people don't know this, but your question (and many others on this forum who have suffered similar incompetence at the hands of a solicitor) is answered by the fact that solicitors do not face a compulsory exam in Wills and estate administration during their education or training. And whilst they must undertake refesher training each year it can be in anything they like.

In this housing market, I'm sure there are plenty of conveyancers out there that have turned their hand to Wills, with the probate work to follow (can't be too hard can it?). There are also so called specialists that have been getting away with murder for years.

I'm not sure what this solicitor has actually done to warrant 6k, my guess judging by your post is not a lot. It begs the question what the second solicitor actually did to get your fee reduced (other than charging you yet more money).

I would be inclined to complain about this to the SRA, because this is appalling service.

I'm afraid this whole murky profession is a real lottery, with as many losers as winners. Identifying the winners is almost impossible, but the following organisations at least must demonstrate their expertise by passing exams and continuous professional development in their chosen fields:

• Society of Trusts and Estate Practitioners
• Solicitors for the Elderly
• Institute of Professional Willwriters.

I do hope you are able to take this further - good luck.

John_Pierpoint

Scooter7 wrote: »

My mum died in Sept 05, and my dad in Dec 01. I don't know if my dad's allowance could have been used? This certainly wasn't raised by the solicitors at the time. Are these dates prior to the ability to do this?

The second death has to occur

: On or after 09 October 2007.

localhero

Thanks John Pierpoint, I forgot to answer that question amid my 'incompetent solicitors' rant!

sdooley

John_Pierpoint wrote: »

Don't you believe it, some of them are all fur coat and no nickers, cash is king at the moment and the Revenue expect to be paid in cash - not share options.

If shares and share options have value, a stockbroker will normally sell them to fund the IHT before probate (if they are held in nominee account).

Another sad thing is where old people live in a massive house they can't afford to repair or heat instead of switching down to a more modest place, swallowing pride, to give that bit of spare cash to look after themselves while they're around and well to enjoy it.

kate2510

sdooley wrote: »

If shares and share options have value, a stockbroker will normally sell them to fund the IHT before probate (if they are held in nominee account).

Would someone explain 'nominee account', please.


Scooter,
I hope you have managed to sort out the administration of the estate problems and that your sense of loss is becoming easier to bear. I lost my mother in October 2008 and sympathise with you having to face all the redtape when you are financially (as a student) as well as emotionally vunerable.
I may be wrong but if you did decide to sell the house and it does not reach the Revenue's valuation because of its condition I believe you can reclaim any overpayment of Inheritance Tax although there may be a time limit attached to this.