What happens next?

cavyslave

Yorkshireman99 wrote: »

Quite! Console your self with the thought that to pay £100K in IHT the amount you will get will be worth waiting for.

£104K all but a few pennies to be precise. It was quite a shock but luckily there were enough liquid assets in the accounts to pay the bill, otherwise I'd have been stuffed!

Savvy_Sue

cavyslave wrote: »

Oh, and the statutory notices aren't going to be posted until after the distribution of the estate.

that is very unusual - especially if you're using solicitors. The point of the SNs is to allow anyone who feels the deceased owed them money can ask for it. If you've distributed before publishing, where's the money for any 'proved' debts going to come from?

Yorkshireman99

Savvy_Sue wrote: »

that is very unusual - especially if you're using solicitors. The point of the SNs is to allow anyone who feels the deceased owed them money can ask for it. If you've distributed before publishing, where's the money for any 'proved' debts going to come from?

The beneficiaries have to pay.

cavyslave

Yes, that's correct. I was dealing with his finances anyway for the last 3 years of his life under POA so I know exactly what he owed and to whom.

Anyway, the good news is I've just received a letter from my solicitor informing me that probate has now been granted and as soon as they have collected in sufficient funds they will make an interim payment into the executors account.

Is their any guidance on how I distribute it? I have a huge chequebook here that I will obviously need to pay the few bills owed, and then the remainder is to be split 50/50 between myself and my son. Do I just write him a cheque out for the amount the estate owes him? I'm a bit daunted by all this and would like some advice. For instance, what records do I have to keep?

Thank you.

brewerdave

I just prepared a simple spreadsheet showing assets and liabilities and then calculating net assets per beneficiary. I paid all known bills first, then an interim distribution to beneficiaries once I had sufficient monies in the exec. account.
When I finalised the accounts I sent a printed copy of the spreadsheet with the final cheques. This was ~ 9 months after death ,but I didn't have any property to deal with which would have extended the timescales.

cavyslave

Thank you. As it's just me and my son would it still be necessary to keep accounts? We are both happy to hold onto the property for now until we decide to sell it. Also because everything was split down the middle we know both own half the property each. How does that work out with regards to transfer of ownership with the land registry?

Yorkshireman99

cavyslave wrote: »

Thank you. As it's just me and my son would it still be necessary to keep accounts? We are both happy to hold onto the property for now until we decide to sell it. Also because everything was split down the middle we know both own half the property each. How does that work out with regards to transfer of ownership with the land registry?

Things to remember are insurance, council tax and CGT. LR transfer is easy. Just download the forms and submit with ant fee assuming the property is already registered. If not get the solicitor to do it.if you are going t rent it out all sorts of legislation needs complying with.

cavyslave

Insurance is up to date, council tax is nil as registered as an empty property at the moment, CTG - I don't know anything about that and will probably need some advice lol

Yorkshireman99

cavyslave wrote: »

Insurance is up to date, council tax is nil as registered as an empty property at the moment, CTG - I don't know anything about that and will probably need some advice lol

Assuming the house is not your main residence if and when you sell it then Capital Gains Tax may be payable. The base value for calculating the gain will be the probate value.

Savvy_Sue

Yorkshireman99 wrote: »

The beneficiaries have to pay.

:-) yes I know that, and when there are only two beneficiaries it's probably not unreasonable to distribute the estate before the SNs are placed, it's just (I thought) highly unusual for solicitors to do it that way round!