slimmer1 wrote: »
Just finished sorting out my mother-in-law's estate. Quite easy if you're comfortable with documentation. I've found:
- It really helps if you get AUTHORISED copies of both the death certificate (best obtained at the point of registration) and of the will ( we got 5 of each - and needed them all. Most establishments return them but if you have more, you don't have to wait for all that and can send off to all establishments at the same time). You may well have to establish proof of identity by production of passport, utility bills, photo driving license; any copies will also need authentication just like a passport application.
- Probate only needed if property or land involved, large sums of money OR if the banks you're involved with insist!! (depends on cash total, usually £20K). My understanding is this is to ensure identity of executors is established and ownership of estate is also established AND validity of the will is established.
- Executors don't have to follow the will!!!!! You can vary it providing it remains within the broad wishes of the deceased BUT agrement of all parties is such a good idea.
- One obstacle is as soon as there is a death, their bank account is frozen so you need some account to handle the estate cash. Banks no longer allow 'executors accounts' so, again with the agreement of all interested parties you can just open another account - best in at least one (or all) executors names. BEWARE, some establishments require destination accounts for payouts to be at least 6 months old!!
- Funeral expenses can be paid by the deceased bank directly to the funeral directors by BACS upon presentation of the bill - it may take a little while.
- These barriers are ensure legacies only go to the intended, prevent future challenges, establish an audit trail for all money and assets.
Hope this helps.
Then there is probate - I didn't.
kingbing wrote: »
Under the new scheme, estates under £50,000 will pay nothing but above that the fees will go up to £20,000!
What happens if your wife or husband dies but your only asset is your house? You may have to sell your own home to pay the fees.
Mojisola wrote: »
The proposed probate application fees are as follows:
£300 for estates worth more than £50,000 and up to £300,000
£1,000 for estates worth more than £300,000 and up to £500,000
£4,000 for estates worth more than £500,000 and up to £1 million
£8,000 for estates worth more than £1m and up to £1.6 million
£12,000 for estates worth more than £1.6m and up to £2 million
£20,000 for estates worth more than £2 million
If anyone leaves an estate worth over £2m, it shouldn't be difficult to pay the fee.
If all the value of the estate is in the property, the surviving spouse should be able to get a loan to cover the fees - although this situation would be a good case for planning ahead for inheritance tax and probate.
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