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DIY Probate

edited 30 November -1 at 1:00AM in Deaths, Funerals & Probate
99 replies 15.9K views
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  • CarmenCarmen Forumite
    1.7K posts
    Thank you g6,fred and T.tenor for you kind words and advice.

    Tenor, there are many reasons (unhappy story) that my dear sister named me as the executrix.

    During the early days my sister made all the relevant enquiries regarding any her pensions etc. The only thing her husband is legally entitled to is her pensions at what ever rates they stipulate.
    They had separate bank accounts, and the monies that are left in them may amount to a couple of thousand? She does have a few share that she was given when her BS became a bank (her name only)
    The house was in joint names, no problem there, no inheritance tax to consider.
    The life insurance was in her name only. BiL said he has sent papers to insurers for the claim. I shall phone the insurers tomorrow just to
    make sure the claim will cover the funeral costs, BiL has
    apparently paid £1000 already to the funeral directors.

    These matters have arisen since receiving the original will from the solictor and him telling me (briefly) that my entitlements go further than the assets she had already parted with.

    Because my planned journey home is fast approaching and I have played ostrich for several weeks alreday I hope most of the above can be dealt with within the next eight days, wishful thinking maybe!

    I did love my sister dearly and I am thankful that I have a kind, loving and understanding family that are helping me through this.
    Thanks again.
    Carmen x
  • SandraScarlettSandraScarlett Forumite
    4.1K posts
    Part of the Furniture Combo Breaker
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    Carmen wrote: »
    Thank you g6,fred and T.tenor for you kind words and advice.

    Tenor, there are many reasons (unhappy story) that my dear sister named me as the executrix.

    During the early days my sister made all the relevant enquiries regarding any her pensions etc. The only thing her husband is legally entitled to is her pensions at what ever rates they stipulate.
    They had separate bank accounts, and the monies that are left in them may amount to a couple of thousand? She does have a few share that she was given when her BS became a bank (her name only)
    The house was in joint names, no problem there, no inheritance tax to consider.
    The life insurance was in her name only. BiL said he has sent papers to insurers for the claim. I shall phone the insurers tomorrow just to
    make sure the claim will cover the funeral costs, BiL has
    apparently paid £1000 already to the funeral directors.

    These matters have arisen since receiving the original will from the solictor and him telling me (briefly) that my entitlements go further than the assets she had already parted with.

    Because my planned journey home is fast approaching and I have played ostrich for several weeks alreday I hope most of the above can be dealt with within the next eight days, wishful thinking maybe!

    I did love my sister dearly and I am thankful that I have a kind, loving and understanding family that are helping me through this.
    Thanks again.
    Carmen x


    It's a rotten time, isn't it. It appears that the lines of demarcation - who does what - have become rather blurred. As your BIL has said that he's already "sent the papers" regarding the Life Insurance, ask to see the letter that they sent to him, requesting documentation.


    I know of a widow who was given the runaround and continuously asked for something else, thereby extending the time it should have taken for the funds to be released. It's not enough to have just sent the Death Certificate, he would have needed to send a utilities bill, and an official letter, eg from the DWP or HM Taxes.


    My late DH worked for decades at a large company who insisted that I sent my original marriage certificate, before they would entertain a spousal pension, and I was so worried about this, that I sent it registered post.


    The joint property will need to be valued, to calculate what your sister's half is worth. I made sure when I arranged the appointment with the estate agent that this was free! They'll value the property, less 10% for Probate purposes, and your sister's share is then half.


    Your BIL mustn't bully you, and if you feel that you cannot carry out all the duties of an executrix, you don't have to! You just tell your BIL that it will have to be placed in the hands of a solicitor, and that will mean he'll be paying the fees out of his inheritance.


    A lot of us make promises during our lives that then prove impossible to keep. It's evident from your posts that you and your sister were very close, and there is no way that she would want you to have further distress than that what you naturally feel in the circumstances.


    If I can be of any further help, please do not hesitate to PM me. I was never lucky enough to have a sister, and I am so sorry for your loss.


    xx
  • SandraScarlettSandraScarlett Forumite
    4.1K posts
    Part of the Furniture Combo Breaker
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    BTW, the funeral expenses are horrendous, and if there are insufficient funds from Life Insurance, and what your sister's shares are worth, plus the sums in her Bank Accounts, your BIL will just have to pay the difference.


    That's not down to you!


    xx
  • CarmenCarmen Forumite
    1.7K posts
    Sandra, thank you for taking the time to reply.
    Are you saying I would be entitled to have of the house!!
    How would that work, without making him homeless:eek he has told me he will leave everything to his children when he passes!
    Tomorrow I shall speak to some of the people he has been in touch with to see what action they need me to take.
    I will certainly take your offer of help if I get in a tizz, thank you.
    Thank you for your kind words.
    Carmen xx
  • SandraScarlettSandraScarlett Forumite
    4.1K posts
    Part of the Furniture Combo Breaker
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    Carmen wrote: »
    Sandra, thank you for taking the time to reply.
    Are you saying I would be entitled to have of the house!!
    How would that work, without making him homeless:eek he has told me he will leave everything to his children when he passes!
    Tomorrow I shall speak to some of the people he has been in touch with to see what action they need me to take.
    I will certainly take your offer of help if I get in a tizz, thank you.
    Thank you for your kind words.
    Carmen xx


    No, sweetie, you would only be entitled to half of the house if this was in your sister's will! The reason I used the word "half", is because you said the property was jointly owned.


    Therefore your BIL already owned half, and your late sister half. So if, for round figures, it was worth £200,000, then your sister's half was worth £100,000.


    For Probate purposes, they deduct 10% of the value, which would amount to £90,000 for your sister's half.


    Supposing I died, and I had 10 children, and they wanted a quick sale so they could each get their share. The property would be reduced by 10% for the quick sale, so if my property, (remember I'm a widow) was valued at £200,000 on the open market, it would be worth, for Probate purposes, £180,000.


    xx
  • g6jns_2g6jns_2 Forumite
    1.2K posts
    No, sweetie, you would only be entitled to half of the house if this was in your sister's will! The reason I used the word "half", is because you said the property was jointly owned.


    Therefore your BIL already owned half, and your late sister half. So if, for round figures, it was worth £200,000, then your sister's half was worth £100,000.


    For Probate purposes, they deduct 10% of the value, which would amount to £90,000 for your sister's half.


    Supposing I died, and I had 10 children, and they wanted a quick sale so they could each get their share. The property would be reduced by 10% for the quick sale, so if my property, (remember I'm a widow) was valued at £200,000 on the open market, it would be worth, for Probate purposes, £180,000.


    xx
    I am sorry to say that this 10% reduction for probate purposes is simply not correct. HMR&C expect the full open market value to be used less reasonable selling expenses. They have tightened up on this loophole in recent times. Where a property is sold immediately after probate the actual value can be substituted and an adjustment made.
  • CrabappleCrabapple Forumite
    1.6K posts
    Further to G6s point, it has to be open market value, no automatic 10% off, but you also aren't allowed to deduct any costs of sale. Those arise after the death and can't be taken off the value of the Estate for IHT/Probate forms.

    The only post-death costs you can deduct from an estate are related to the funeral.
    :heartpuls Daughter born January 2012 :heartpuls Son born February 2014 :heartpuls

    Slimming World ~ trying to get back on the wagon...
  • My letter from the probate office came through today. I had put that I wanted to have my interview in the London Office (even though its 50 miles away) but the letter came and I can still go to a solicitors office locally and that is all booked for tomorrow.


    I feel like that this long process had just picked up some speed again. It seems to be hurdle after hurdle getting to this point.
  • CarmenCarmen Forumite
    1.7K posts
    Lol Sandra, thank goodness my conscience is on overload.
    Carmen x
  • SandraScarlettSandraScarlett Forumite
    4.1K posts
    Part of the Furniture Combo Breaker
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    G6JNS wrote: »
    I am sorry to say that this 10% reduction for probate purposes is simply not correct. HMR&C expect the full open market value to be used less reasonable selling expenses. They have tightened up on this loophole in recent times. Where a property is sold immediately after probate the actual value can be substituted and an adjustment made.
    Crabapple wrote: »
    Further to G6s point, it has to be open market value, no automatic 10% off, but you also aren't allowed to deduct any costs of sale. Those arise after the death and can't be taken off the value of the Estate for IHT/Probate forms.

    The only post-death costs you can deduct from an estate are related to the funeral.


    Hi, I'm only repeating what the estate agent told me. In any case, DH's half, plus his savings, less funeral costs, were well below the Inheritance Tax level.


    xx
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