Probate & IHT Initial Questions

johnD17

Hi All.


After a nightmare couple of months, I still haven't had the 'proper' death certificate, to register my dad's sudden death as yet. After numerous calls to the coroner (now transferred) I hope to get an update this afternoon.


I've not been sure what to do - regards accounts etc. so I haven't done anything as yet.


I'm doing everything on behalf of my Mum as she doesn't have a clue about these kind of thigns, and my dad did it all.


I'm quite worried about the whole probate and IHT situation - and will probably have a lot of questions when I get into it but:


1. What happens to any incomings/outgoings post death (from his account)


2. Are funeral costs deducted from the estate PRE or POST estate evaluation/ IHT numbers? What happens where me and my mum have had to pay.


3. What happens to the joint account (if my mum already has a sole account with the provider) - Can this move to a joint account with me instead?


4. Regards the 'gift' rule of within 7 years - this is going to be very difficult to ascertain. I want to I) be as accurate as I can but also II) not go into too much depth in exploring but also iii) ensuring if there is IHT, it can be minimised. (One example is my dad gave me some money a few years ago for help with a house. Some of this money was in my name anyway (bonds setup when I was a baby) but some wasn;t - I have no idea to find out how much was in his name, other than ringing up an old bank account from 3 years ago, getting my online details again and seeing if they could provide details on the original deposits - but I doubt this would show up online?


5. Are gifts to partners (not married) exempt? i.e. mum and dad weren't married. Will has tenenancy in common for their house. (My dad put money in his account and then transferred to my mum c. a year ago)
Item 4 is probably the most stressful and I'll have questions linked on when I can move forward.

Yorkshireman99

1. The bank should have been notified of the death and the account would have been frozen so no payments in or out.

2.Funeral cost is a debt of the estate so is deductd. Whoever claimed can recover thcost from the estate.

3. If your mother had a joint account with your father then that now belongs to her. Have the bank been notified?

4. Unless the eatate is over the IHT limit the gifts don't really matter. Bonds set up when you were a child don't count as they were more than 7 years ago.

5. Gifts to unmarried partners are not exempt.

johnD17

Thanks Coroner now tells me i should have been doing all of this with interim death certificate

Gifts - these would take it over the limit if I'm including money paid in by my dad and then moved to my mum's account (same bank) (i think) parents not being married and overseas property in his name is the issue.

What happens with a bond that may mature (doesn't say when) i hope they don't get out of paying interest

johnD17

Re point 4 i get the bonds in my name don't count but i can't ascertain how much was actually in his name at the time, that were cashed in and then used by me

johnD17

I don't want to spend more days investigating, trying to pull records speaking to departments etc to actually do the tax man's job for them.

Brighty

I dealt with all my dads accounts and probate etc with just the interim death cert, in fact i never got round to paying for the full cert, should probably get one at some point

Yorkshireman99

johnD17 wrote: »

I don't want to spend more days investigating, trying to pull records speaking to departments etc to actually do the tax man's job for them.

It IS the executor's job to make sure that the figures are as complete and accurate as possible. You risk heavy penalties if you get it wrong. I can understand it may be difficult, but it has to be done.

johnD17

With due respect, it takes a coroner 6 weeks to not do much at all.


Please advise on how I am suppose to ascertain where money came from 3 years ago, from accounts that no longer exist, to an account that I have no details for. Best case:


1. I ring the bank, reset my online details, gain access, check back 3 years ago, and see payments as DEBIT XK.
2. This transaction will show as paid in by ME, in my name.


I don't think the Bank will 1) be able to or 2) oblige a request to dig into the original deposit and where this would come from.


I have no idea where the money came from. It may have been cashed in premium bonds.


I'm sure as many MSE's can appreciate, people have multiple accounts (I'm sure I;ve had about 20 accounts over the last 3 years, only c. 3 that I use).


My experience of pretty much any organisations call department is less than dire. Nothing is ever simple, and menial tasks take weeks and there is usually a fcuk up on the way. So no idea how I would ascertain original sources of funds from somebody that is deceased.

Yorkshireman99

johnD17 wrote: »

With due respect, it takes a coroner 6 weeks to not do much at all.


Please advise on how I am suppose to ascertain where money came from 3 years ago, from accounts that no longer exist, to an account that I have no details for. Best case:


1. I ring the bank, reset my online details, gain access, check back 3 years ago, and see payments as DEBIT XK.
2. This transaction will show as paid in by ME, in my name.


I don't think the Bank will 1) be able to or 2) oblige a request to dig into the original deposit and where this would come from.


I have no idea where the money came from. It may have been cashed in premium bonds.


I'm sure as many MSE's can appreciate, people have multiple accounts (I'm sure I;ve had about 20 accounts over the last 3 years, only c. 3 that I use).


My experience of pretty much any organisations call department is less than dire. Nothing is ever simple, and menial tasks take weeks and there is usually a fcuk up on the way. So no idea how I would ascertain original sources of funds from somebody that is deceased.

Is the estate likely to be enough for IHT to be paid? If not then it is a non problem. If it is then the executor, is legally responsible for obtaining the necessary figures. Banks hold records going back at least six years.so you need to ask them. It may be difficult, time consuming and frustrating but that does not remove the executor's liability to do the job.

Keep_pedalling

You have the added problem of a foreign property to deal with. Did he have a seperate will covering that? If not it is likely that the intestacy rules of that country will apply.

Trying to wind up an estate where the deceased had not kept a decent set of financial records for their executors can be a nightmare, but unfortunately for you, the executors are the only people responsible for sorting out whatever mess is left.

Keep_pedalling

Although the horse has bolted as far as your father is concerned, make sure your mother does not leave you with similar problems, and make sure you keep a copy of your relative financial records with your will to keep things simple for your executors.