Proof that cash was from Inheritance?

Sea_Shell

Good Morning

I understand that inheritance is exempt from Income Tax, however, is there anything i need to do/keep to PROVE that cash deposited from a relatives account is from an Inheritance, so as to not push me into becoming a tax payer during a given tax year?

A little background. Small 'estate' which was held in cash (in joint names, by deceased and main beneficiary). I was specifically named in will as due a small portion. Probate not required (because of all cash in joint named account), but beneficiary still wishes to divide the cash as per the will. So any money i'd get would be cash transfer from said account.

Do i just need to keep a copy of the will on file, in case any queries arise over the deposit in my account?

thanks everyone.

Yorkshireman99

Sea_Shell wrote: »

Good Morning

I understand that inheritance is exempt from Income Tax, however, is there anything i need to do/keep to PROVE that cash deposited from a relatives account is from an Inheritance, so as to not push me into becoming a tax payer during a given tax year?

A little background. Small 'estate' which was held in cash (in joint names, by deceased and main beneficiary). I was specifically named in will as due a small portion. Probate not required (because of all cash in joint named account), but beneficiary still wishes to divide the cash as per the will. So any money i'd get would be cash transfer from said account.

Do i just need to keep a copy of the will on file, in case any queries arise over the deposit in my account?

thanks everyone.

The money in the joint accounts is not part of the estate. Any money paid to you will simply be a gift friom the surviving joint account holder. From April the first £1,000 of interest will be tax free so I doubt you have anything to worry about. The only effect might be on means teasted benefits if you are claiming any.

getmore4less

There is no income tax on capital transfers wherever they come from.

Usual for an administrator to ask for a receipt but for small amounts some don't bother.

Assets(some/all) in joint accounts can belong to an estate where it is clear the account was funded by the deceased and the joint was for convenience and not really a shared asset.

Sea_Shell

Thanks for those replies. I guess i'll just sit tight and see what happens.