Revocation

no1catman

In the event of someone dying intestate, can a next-of-kin relative write a letter of revocation in favour of someone:
- is geographically nearer to be an 'executor' and more willing, and/or
- who it is more appropriate to benefit from the estate??

Torry_Quine

If someone dies interstate then there is no compulsion for any one person to apply to administer the estate and so there is no need to write anything

martinthebandit

Torry_Quine wrote: »

If someone dies interstate then there is no compulsion for any one person to apply to administer the estate and so there is no need to write anything

But whoever does administer it they must dispose of the assets in accordance with the rules, I don't believe (but I could be wrong) that can be varied.

https://www.gov.uk/inherits-someone-dies-without-will

Tuesday_Tenor

Two separate issues here.
Both things you want are possible, though through different mechanisms, not through a single letter:

1) Not wanting to administer the estate:

The priority order of the 'right' to administer an intestate estate (widow, then children, etc) is at top of page 3 of the PA2 guidance which accompanies the PA1 Pobate Application form. (Same PA1form is used whether there is a will or not):
http://www.probateforms.info/wp-content/uploads/2012/12/PA2-How-to-obtain-probate-leaflet.pdf

However no one HAS to do it if they don't want to; someone from the next tier of 'right' can do so. There is a hierarchy, so, for instance, a son can't do it if the widow WANTS to do it. But he can if she doesn't want to. The PA1 form enables you to explain clearly.

2) Wanting to direct your own inheritance to someone else.

Whether it was inherited through a will or through the laws of intestacy, you can direct it to someone else:

Either
A) Inherit it and then gift it to someone else.
Do something called a 'Deed of Variation' so you do not actually inherit at all but direct what would have been your inheritance to someone else.

(B) is advantageous to someone who's own estate is likely to be large enough to incur Inheritance Tax when they eventually die, as it stops their own assets getting larger than they really need. You would need a solicitor to do the Deed of Variation.

If your own estate isn't going to be over the IHT threshold then just inheriting the money and giving it away, as in (A), is fine.

But when thinking about giving away an inheritance, there there is also the question: have you already got sufficient assets to pay for several years long-term care, in case needed? Look up 'deprivation' of assets' as you can't expect the state to fund care if you have given away assets or refused an inheritance when you were likely to need care funding. So, only give away what you REALLY aren't going to need.

securityguy

"you can't expect the state to fund care if you have given away assets or refused an inheritance when you were likely to need care funding"

That isn't the definition of deprivation of assets. For a transaction to be deprivation of assets, the need to fund care must be immediately foreseeable, not merely possible. If you are currently in good health, that is the end of it: DoA does not extend to "you might need it later if your health declines" (as otherwise, going on a cruise when you are 65 could equally be argued to be money you should be saving for care later). And the transaction must have as its primary or main intent the obtaining of state funding: if another purpose can be shown, that too is the end of it. In particular, that a transaction was conducted for the purpose of proper IHT planning will be - in general, seek advice, there are exceptions, etc - a defence of an accusation of DoA.

Things like transfers of houses late in life are going to be looked at incredibly closely: they are pretty transparently DoA, as they aren't effective IHT shelters ("gift with reservations") and therefore the only reason would be held to be avoidance of care costs. But passing inheritances straight through to your children to avoid the potential for double IHT is entirely legitimate tax planning and you would have to be on the very verge of care for it to be seen as DoA.