Mistake in Inheritance Tax

Kilmaley01

Hi, I am reasonably new to the site so if this is in the wrong place I apologise and please let me know where I should post?

Towards the end of last year, we were one of 28 benificaries of a will. We received just over £20k which cleared almost all our debts.

This week we have had a letter from the solictors saying they had recently received an Inheritance Tax assesment from HMRC in relation to that estate. They say they contacted HMRC re this as it was their understanding that all I tax had been paid. Unfortunately they say that although they advised the Distridct Valuer that the property had been sold this info was not passed on to HMRC and the I tax was not paid in full. They go on to say that this was not picked up by them at the time of completing the administration of the Estate and apologise for their oversight!!

They then say they now require to pay I Tax of over £64k. And they need to pay it by 10th July!! The enclose an amended account and now want from us £4,170 by this date!

We dont have this money anymore. My question is, does anyone know if we have any rights regarding this. Is there anything we can do.

My sister inlaw inherited far more and they are asking her for £36k! She has spent a lot of the money doing up her house and invested the rest where she cannot get at it.

We are at our wits end as to what to do.

Any help would be gratefully appreciated!

Thanks in advance and hope!!

fullstop

gromit2303 wrote: »

Hi, I am reasonably new to the site so if this is in the wrong place I apologise and please let me know where I should post?

Towards the end of last year, we were one of 28 benificaries of a will. We received just over £20k which cleared almost all our debts.

This week we have had a letter from the solictors saying they had recently received an Inheritance Tax assesment from HMRC in relation to that estate. They say they contacted HMRC re this as it was their understanding that all I tax had been paid. Unfortunately they say that although they advised the Distridct Valuer that the property had been sold this info was not passed on to HMRC and the I tax was not paid in full. They go on to say that this was not picked up by them at the time of completing the administration of the Estate and apologise for their oversight!!

They then say they now require to pay I Tax of over £64k. And they need to pay it by 10th July!! The enclose an amended account and now want from us £4,170 by this date!

We dont have this money anymore. My question is, does anyone know if we have any rights regarding this. Is there anything we can do.

My sister inlaw inherited far more and they are asking her for £36k! She has spent a lot of the money doing up her house and invested the rest where she cannot get at it.

We are at our wits end as to what to do.

Any help would be gratefully appreciated!

Thanks in advance and hope!!

I would make an appointment to see a solicitor, if possible at the CAB to start with.

Lokolo

I don't get it. You recieved £20k and they want you to pay back £64k?

JoeCrystal

You did not read it correctly. They just want gromit2303 to pay £4,170.

D1zzy

Maybe the solicitor who got it wrong in the first place would like to contrubute his fee towards the outstanding tax

JoeCrystal

But still... it may be that the deceased’s estate cannot pay it so liability fell on people who inherited them. As I understand it, Inheritance Tax generally comes out of the deceased’s estate before the inheritance is passed on after all.

D1zzy

JoeCrystal wrote: »

But still... it may be that the deceased’s estate cannot pay it so liability fell on people who inherited them. As I understand it, Inheritance Tax generally comes out of the deceased’s estate before the inheritance is passed on after all.

Yep the solicitor got it wrong and dished out too much money without getting clearance.
Solicitors get paid to get it right - we can do it ourselves for free and get it wrong - so the solicitor has to be accountable.

opinions4u

My understanding is that the beneficiaries could still be liable for underpaid IHT, but not for any penatlies for the poor statement of account - the executor alone is liable for those (which can equal the unpaid tax).

It might be better posting on the "Cutting Tax" part of the forum though.

DreamerV

I have no real knowledge of these sort of issued, however, I'd be tempted to offer to pay the amount asked for minus the solicitors fees (since they didn't do the job they were paid to do) and ask the solicitor to settle the account immediately, while you pay back the remainder due to them over a timescale which lets you afford to do so. The money is owed, so I reckon it needs to be paid, however what happened is not your fault, so you shouldn't have to struggle through while paying it back. And you certainly shouldn't have to pay for a job that wasn't done properly.

Lokolo

Yes a repayment plan is best thing to go forward with.