How long to recieve inheritance?

sdewey

I hate to ask this but my Grandfather passed away 2 months ago and has left me 50'000 to use as a deposit for a house...the thing is I have seen the pefect place but dont know how long it will take before I recieve the money?

The money is coming out of shares he had with the actual house left solely to my auntie. We are the only two in the will, but not on speaking terms. If there is inheritance tax to pay on the house, do I have to wait for that to be sorted out first (would I have to pay inheriatnce tax on my lump sum?) , or can my shares be sold before?

My Grandad had all his financial matters completly up to date and organised, no debts/mortgage ect, so I thought this would be quite straightforward? Do you think I can put a offer on this house I have seen?

Many Thanks

dzug1

Inheritance tax has to be paid before Probate is granted. You personally do not pay it but obviously whatever is paid will affect the amount you get. Well may - it depends how the will is worded.

The shares cannot be sold before Probate is granted

There may also be capital gains tax to pay if the shares have risen significantly in value between the date your grandad died and the date they are sold.

If a solicitor is dealing with the estate I doubt if you will get anything before 6 months is up - possibly a payment on account.

If you aunt is dealing with the estate personally then it could be quicker if she has a mind to it. If you are not on speaking terms she has no incentive to do so. OTH she has by convention a year to sort things out and may see no reason to hurry.

Pennywise

The first thing you need to know is who are the executors? The will says this. If a solicitor has been appointed under the will to act as executor, just contact them and ask when you're likely to get your money and chase if you feel they are dragging their feet.

As already stated, the executors need to apply for probate before anything can be paid out of the estate and inheritance tax has to be paid before probate is granted. Even in the simplest of cases, getting the grant of probate can easily take a few months from date of death.

Then once probate has been granted, it has to be sent to the various banks, stockbrokers, etc., to be processed/reviewed before funds are released.

You realistically should allow about six months from date of death but I would start to chase the executors after three months to make sure that the process has at least been started and keep them on their toes.

John_Pierpoint

Do you have a copy of what you believe to be grandfather's last will?
Are you sure grandfather was debt free and has no other obligations?

The most important thing to know is "Will the estate be paying InHeritance Tax" (IHT).
BUT the executor has no real need to even talk to you until the will has been proved (ie probate has been granted and the two month advertising for counter claimants has expired.)
If you are VERY NICE, the executor might be able to give you a payment on account - it really depends on what the rest of the will says and how much your 50K is of the total estate and who else gets what. The executor is getting into trouble if you get special favours.
Alternatively a solicitor may be able to give you a letter explaining your "great expectations" that would allow your lender to extend more money to you - but in the present financial climate I doubt it.

I've been an executor 4 times in my life and on two of those estates I've had some bully trying to jump the queue giving me the "I want my money and I want it now" treatment. They went all round the houses and eventually realised that the executor holds all the cards and might as well have told them to go forth and multiply at the start of the conversation.

The only beneficiary who jumps to the head of the queue is HMRC. The executor is expected to get everything sorted out. Pay the IHT and WAIT. In my latest case processing my paperwork took nearly 3 months and after I had got probate, advertising for other claimants took getting on for another 3 months.

If the executor does not get as far as calculating the Inheritance Tax and submitting the paperwork (It is the size of a news paper's colour supplement) within 6 months, HMRC starts charging interest.

As an ordinary beneficiary, entitled to a specific bequest of 50,000 (would that be after tax or do you have to pay your share of IHT on it?) you can start claiming interest on it, if it has not been paid a year after the death.

So to sum up a small estate is likely to take 6 months (There are examples on here of it being done in 3 but that is for people who die with their affairs in good order. An estate is like a garden it can take a whole year to find out what is in it)
An estate involving IHT, or the sale of real estate, is likely to take a year.

HMRC figures show that more than 2/3rds of estates are completed (from their point of view) within 2 years.

If you want to use "Mr Dog" and my name, in Google to search this forum you should find my postings for sorting out an estate paying IHT. You will also find some links to "horror stories".

John.

PS Am I right in thinking that "Auntie" is your grandfather's blood daughter ?
Why is she the only one inheriting a large chunk of the estate?
Is "Auntie" already living in the house?
Is she married ?
Has children of her own?
I ask this because it is possible that if "auntie" is "a poor relation" possibly with no "issue" of her own, grand
father's will may create an Interest in Possession (life interest) trust, to prevent "Auntie" leaving the house
to the local cats home.
If grandfather died after October 2007 and when his legal partner (ie his wife) died, she left everything to him then your grandfather should qualify for an IHT nil rate band of 650,000 otherwise he may have as little as 325,000. If you feel it is relevant you could check his wife's probate and will.