Assets missed for IHT calculation - what now?

bobthedambuilder

My bachelor uncle died intestate in 2008 and my father handled all the legalities and tax matters relating to his death. I understand that the estate was liable to IHT, which was paid and all legal matters related to my uncle's death completed by 2010. His assets after IHT were distributed between my father and my aunt, who has also since passed away.

My father has just discovered a further small holding of shares in my uncle's name, worth about £2000. What does he do now?

dzug1

Possibly donate them to charity. No IHT and someone else does all the messy paperwork

Or sell the shares, sort out the IHT and any other tax with HMRC, keep half the proceeds and give the other half to the executors of the aunt's estate.

Savvy_Sue

I'd suggest a phone call to the probate registry which dealt with the estate originally: I'm sure they'll know what to do and it won't be the first time this has happened.

Or John P will give you the phone no. for HMRC's Estates and Trusts dept.

Savvy_Sue

cross-posted with dzug, if donating the shares to charity is possible that will almost certainly be the least messy way to go!

antrobus

bobthedambuilder wrote: »

....My father has just discovered a further small holding of shares in my uncle's name, worth about £2000. What does he do now?

He does it all over again.

He can't just give the shares to charity as has been suggested. The law specifies who inherits when someone dies intestate, it does not permit the administrator to make up their own rules.

antrobus

Savvy_Sue wrote: »

...Or John P will give you the phone no. for HMRC's Estates and Trusts dept.

Probate and IHT helpline 0845 302 0900

Even though I'm not John P.:)

troubleinparadise

Given that the shareholding is in your uncle's name, your father will have to go via his original pathway to acquire and sell or transfer them. The sale/transfer will be trackable, and will probably trigger a taxable situation.

Therefore they do have to be declared to HMRC. After that the proceeds should be distributed according to the intestacy rules.

Give them to charity - what would the charity do??? They couldn't add them to their shareholding, or sell them as they are in the Uncle's name. So basically worthless to the charity.... unless given the proceeds of that which your father might receive. :eek:

John_Pierpoint

Savvy_Sue wrote: »

Or John P will give you the phone no. for HMRC's Estates and Trusts dept.

:hello::hello: I've been away on a mini "holiday".