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executor redponsible for council tax?

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executor redponsible for council tax?

edited 30 November -1 at 1:00AM in Old Threads
25 replies 3.6K views
nivlek_2nivlek_2 Forumite
3 posts
edited 30 November -1 at 1:00AM in Old Threads
Hi,

Wondered if someone has the knowledge and would be kind enough to advise us.

My partners Father passed away and both she and her sister were made executors. To cut a long story short after about 2.5 yrs his house was repossed as it just wouldnt sell - it went for less than he actually paid for the property and with all the bills there was nothing left in the estate.

We have now received a council tax bill for the property for £1300 is my partner and sister actually liable for this?

Previously they did charge us £300 odd pounds to which we paid out of our savings I did complain about being mislead by their staff as the money should come from the estate to which they did reluctanly refund, because of this i thought it was all over but now they are chasing us again.
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Replies

  • dzug1dzug1 Forumite
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    They are not personally responsible for it. Unless they badly mishandled the estate.

    You mention bills - this is effectively another bill. All bills should have been paid out of the estate - if there was not enough to pay 100% of them a proportion (the same proportion) of each one. Not all of some and none of others.
  • Cheers dzug1

    As it stands and this is roughly

    Bought 85k
    30k deposit
    53k mortgage

    10k was added onto morgage in interest since his passing
    Repossesed and sold for 63k

    Inc council tax 2.5-3 k in outstanding bills

    Solicitor has dealt with everything so far.
  • CISCIS Forumite
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    We have now received a council tax bill for the property for £1300 is my partner and sister actually liable for this?

    Was the estate not settled and the property handed over to the beneficiaries ? - 2.5 years seems a very long time for the estate not to have been settled.

    If the estate was settled then the person who inherited the house is liable for the council tax from the date it was transferred over.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • The house was not transferred - my partner and sister were just appointed as executors, no one inherited anything of value.

    They held out for enough money on the house sale to cover all costs even though this was way lower than initial purchase price but unfortunately as thr mortgage provider kept adding interest repossesion was the only viable option.

    So now even with the house sale the outstanding mortgage interest and bills are simply not covered
  • CISCIS Forumite
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    The house was not transferred - my partner and sister were just appointed as executors, no one inherited anything of value.
    Its relatively unusual for the estate not to settle and dispose of the property, did he die without a will ?.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
  • edited 7 October 2012 at 8:19AM
    YoYoYYoYoY
    281 posts
    edited 7 October 2012 at 8:19AM
    dzug1 wrote: »
    They are not personally responsible for it. Unless they badly mishandled the estate....

    It sounds like the executors have mishandled the estate if they allowed the property to be repossessed.
    Repossession fees and a resultant distress sale of the property rarely, if ever, would amount to maximum returns.

    Furthermore, as the estate was not settled within 12 months, they could be liable for interest too.
  • Nivlek wrote: »
    ...Solicitor has dealt with everything so far.

    Then I suggest that would be the best source of reliable information ;)
  • jackyannjackyann Forumite
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    I have always found the Probate Office very helpful - although they may not get involved if everything has been wound up.
    I also think you should contact the Council - preferably in writing. Explain (briefly - no need for detail about repossession etc.) that the estate has been settled and there was not enough money to cover outstanding bills. Say that you are taking advice about dealing with this. That should at least stop them harrassing you for the time being.
  • Nivlek wrote: »
    The house was not transferred - my partner and sister were just appointed as executors, no one inherited anything of value.

    They held out for enough money on the house sale to cover all costs even though this was way lower than initial purchase price but unfortunately as thr mortgage provider kept adding interest repossesion was the only viable option.

    So now even with the house sale the outstanding mortgage interest and bills are simply not covered

    Somebody must have inherited it, valuable or not!

    How did it rack up £10 K interest on a £53 K mortgage in 2.5 years?
  • CISCIS Forumite
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    Somebody must have inherited it, valuable or not!

    Which is what I expect has happened and that person should be paying the council tax charge.
    I no longer work in Council Tax Recovery but instead work as a specialist Council Tax paralegal assisting landlords and Council Tax payers with council tax disputes and valuation tribunals. My views are my own reading of the law and you should always check with the local authority in question.
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