Disburement of proceeds of a will

finowen

dzug1 wrote: »

Yes it could - but it seems totally unnecessary, as the estate is under the IHT limit.

Depending on what they mean it could be that you will never see the money - just receive an income from it.

The reason is to protect the beneficiaries (mainly the executor who is unmarried and has assets already near to the IHT limit) in the future by putting some of the proceeds into trust, with mutual agreement by all.
Nothing has yet been initiated on this but if, say, we all agree to my brothers share being written into trust I still want my share in cash ASAP. I understand that the will can be changed after death up to 2 years later if all beneficiaries agree to the change.

Mikeyorks

It's a Deed of Variation ......... not a codicil :-

http://www.hmrc.gov.uk/manuals/tsemmanual/TSEM1815.htm

But as that can be exercised up to 2 years after the date of death ........ it should not be allowed to delay interim disbursements? In particular if the person benefitting from the Deed is just one of the beneficiaries to the Will

John_Pierpoint

Has your sibling advertised for creditors? (ie those owed money and those owed a duty of support such as a secret lover with a love child?) It takes theoretically 2 months to get rid of the normal 6 years of statute of limitations but in reality it takes three months to advertise locally and in the London Gazette and wait for replies.
(All I got was some coffin chasers trying to see if there was cheap real estate on offer).

Have our friends in HMRC signed off on the income tax position of the deceased (rather than a liability, there is usually a bit of over charged tax on interest and PAYE to come back, as the tax system will have been expecting the deceased to live a full tax year, and even if the deceased died at some point in the year, the system allows a full year of personal allowances)

That said I would have thought that the sole executor could safely let you have (say) two thirds of your entitlement on account, pending the finalisation of the accounts. Don't forget to ask for your R185. This is the statement of income and dividends earned by the estate since the date of death. The system assumes that when you get paid on account, the first "tranche" you receive mops up your income entitlement.

What your sibling chooses to do with the other half of the estate is really nothing to do with you as you are both adults.

John.

Incidently in reference to setting up an executor's account; I created a postal account with the Yorkshire Building Society immediately. The deal was that I could pay in but could not draw out until I had received grant of probate.
Some organisations, as soon as they hear of a death will simple write a cheque of for the deceased's entitlement to "The personal representatives of..............." and it needs to be paid in somewhere or you risk it going stale.
Similarly the dividends from shares will normally be accepted by the deceased's existing personal account, if it is held with a mainstream bank.