Out of date banknotes

Quality2

Hi all,
Not sure if this is the correct place to post but here goes.
We have just been going through my deceased mothers things and have found a substantial amount of cash which is made up of out of date banknotes.
As this was not listed as part of my mothers estate and not mentioned in the will, would this have to go to probate? or do we just take it to a bank to exchange it for current banknotes?

Any help or advice would be very welcome.

Yorkshireman99

Quality2 wrote: »

Hi all,
Not sure if this is the correct place to post but here goes.
We have just been going through my deceased mothers things and have found a substantial amount of cash which is made up of out of date banknotes.
As this was not listed as part of my mothers estate and not mentioned in the will, would this have to go to probate? or do we just take it to a bank to exchange it for current banknotes?

Any help or advice would be very welcome.

Last time I had to do this I just had to pay them into my bank account. The value does form part of the estate. Is there a residuary beneficiary?

FreeBear

Does the cash take the estate above the inheritance tax threshold ?

Probate will be required if there is a property involved or if some financial institutions insist on it. The cash would need to be declared if probate was applied for as it forms part of your mother's estate. Even if not specifically mentioned in the will, it will still need to be shared out in accordance with her wishes.

Tuesday_Tenor

Assuming the notes can be changed, so are an asset and not scrap paper (need to check) ....

Assume you are the executor?

As per the declaration you signed on the IHT form:

If the value of your mother's estate was over the IHT threshold, and IHT was paid, then you need to inform HMRC about this new asset.

If the value of the estate was below the IHT threshold then you ONLY have to inform HMRC about the new asset if it takes the total value of the estate over the IHT threshold. HMRC are not interested unless any tax is due to be paid!

If you aren't the executor, you need to inform the executor. It is for them to deal with both any tax implications and the distribution.

Quality2

Thanks all for the replies, could you advise what the monetary limit is for the IHT threshold?

My brother was the executor and all assets were split evenly between the three sons (my two brothers and myself) the house was not included.

Keep_pedalling

Quality2 wrote: »

Thanks all for the replies, could you advise what the monetary limit is for the IHT threshold?

My brother was the executor and all assets were split evenly between the three sons (my two brothers and myself) the house was not included.

At least £325,000 but up to double that if she was a widow.

FreeBear

Tuesday_Tenor wrote: »

Assuming the notes can be changed, so are an asset and not scrap paper (need to check) ....

Genuine banknotes retain their face value even after being withdrawn by the Bank of England - This page gives details of how to exchange them for current notes - http://www.bankofengland.co.uk/banknotes/Pages/about/exchanges.aspx

Note: Many of the older banknotes will have a greater value to collectors, so might be worth getting them appraised.

Keep_pedalling

Don't go swapping white fivers for new plastic ones, even wartime German forgeries are worth far more than the face value.

http://www.collectorsworld-nottingham.com/whitenotes.html