Where/who best for proceeds of an estate to go?

johnD17

Hi All - apols for multiple topics.


Some organisations will pay money out pre probate. Regardless, I'm wondering whether money from my dads estate should be paid out to my name or my mum.


My gut is - to me (however it will still be my mums money as far as I'm concerned) - because I'm worried, that as they weren't married, if everything went to my Mum's name, we would then have to pay IHT TWICE.


My only worry with money going to me is that I perhaps now need a will despite only being in my 20's...

Keep_pedalling

Is there a will and if so are you the executor?

johnD17

Yes - me and my mum are joint executors.


So the money can go to either - my question(s) are where is best to go, to protect any future tax/IHT liabilities if anything happened to my mum.

Owain_Moneysaver

It doesn't matter whose bank account you pay it into, the money will be treated as being paid to your mum as she is the legal beneficiary. As executor, you should really ensure that each beneficiary's bequest is paid to that beneficiary.

If you want to change the legal beneficiary to reduce IHT then you need to change the will using a deed of variation.

chesky

What is the precise wording of your father's will?

johnD17

Hi - the above isn't true, me and my mum are equal beneficiaries (They weren't married).


Will upload the will.


The solics who wrote the will are being unhelpful and only providing some information.


It talks about everything going into a trust, of which me and my mum are trustees. I really don't get the purpose of non house items going into a trust, as from a google, it states it would still have IHT implications.

Malthusian

Who are the beneficiaries of the trust?

johnD17

Trustees and beneficiaries are both me and my mum (is my understanding)


please see the will below:


https://unsee.cc/bisuzena/

getmore4less

All estates start out as a trust from the DOD with the executors(or administrators) as the trustees.

How much money are we looking at as there is no spouse exemptions or transferable nil rate band you need to consider carefully what happens within the first 2 years to avoid running out of time to do a DOV.

johnD17

thanks - makes sense.


I thought that a DOV is only worthwhile in keeping assets tied up long term?


Estate is 345-365k.

nom_de_plume

johnD17 wrote: »

Regardless, I'm wondering whether money from my dads estate should be paid out to my name or my mum.

If there's payments from a few sources, it may be advisable to open a separate executors account with your bank. That will keep things nice and tidy for keeping track of all income and expenses.