What if probate isn't applied for?

treecol

Crabapple wrote: »

It isn't that uncommon for Probate not to be applied for when the first spouse dies. If there is no need for it due to joint assets and no IHT liability then I don't think HMRC will be too concerned.

However, if you need to claim the transferable nil-rate band then you will need figures as accurate as possible to give to HMRC at that point, plus copies of death certificate and Will.

If the Executor persists in not wanting to apply, and there is genuninely no need to as discussed above, I'd just file away what you have and keep it for the future as it has all the financial information that must be provided to HMRC in due course.

I suspect this is what will happen. Personally I'd prefer to do the 1st estate now, but it's not up to me. My final port of call is HMRC helpline to check if there may be any problems/penalties in the future. I'll post what they say in case someone in the future has the same problem.

Mojisola

Who has your FIL named as his executor/s? Would your FIL listen to them - he is going to make their work as his executors more difficult if he refuses to act now.

g6jns_2

treecol wrote: »

I suspect this is what will happen. Personally I'd prefer to do the 1st estate now, but it's not up to me. My final port of call is HMRC helpline to check if there may be any problems/penalties in the future. I'll post what they say in case someone in the future has the same problem.

One other point is that HMR&C always look more closely at estates just below the IHT threshold to check that there is no undervaluing. You might also point out to the reluctant executor that the genuine value of the estate will be much more difficult to establish years in the future. With all due respect I can't help wondering if something is not being hidden from you. Apart from the bureaucracy and fees it is hard to see why someone should want to make life more difficult for their heirs in this way. Maybe be a letter from HMR&C would persuade the executor to carry out his legal duty? Good luck anyway.

treecol

g6jns wrote: »

One other point is that HMR&C always look more closely at estates just below the IHT threshold to check that there is no undervaluing. You might also point out to the reluctant executor that the genuine value of the estate will be much more difficult to establish years in the future. With all due respect I can't help wondering if something is not being hidden from you. Apart from the bureaucracy and fees it is hard to see why someone should want to make life more difficult for their heirs in this way. Maybe be a letter from HMR&C would persuade the executor to carry out his legal duty? Good luck anyway.

Wise words. I'd like to find something I can print from the internet which explains the pitfalls etc by not doing it all now - I can imagine the trouble if I ask HMRC to write a letter! However so far I cannot find anything on the web.

G6JNS

treecol wrote: »

Wise words. I'd like to find something I can print from the internet which explains the pitfalls etc by not doing it all now - I can imagine the trouble if I ask HMRC to write a letter! However so far I cannot find anything on the web.

At the risk of appearing arrogant you might like to print out what I said. Also emphasise the fact that there might be heavy monetary penalties if they don't act. The implication that someone is trying to hide something might just stir up indignation that there is nothing to hide and to prove it. Maybe an outside chance but up to you.

treecol

G6JNS wrote: »

At the risk of appearing arrogant you might like to print out what I said. Also emphasise the fact that there might be heavy monetary penalties if they don't act. The implication that someone is trying to hide something might just stir up indignation that there is nothing to hide and to prove it. Maybe an outside chance but up to you.

I can easily accept what you say as common sense. However with this situation, I need "official" literature I'm afraid. Otherwise it's rejected as just speculation. Unfortunately every website I can find only deals with applying for probate.
I really appreciate your help, though.