We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

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

Options
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...
«1

Comments

  • Keep_pedalling
    Keep_pedalling Posts: 20,762 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    Is there a will and if so are you the executor?
  • johnD17
    johnD17 Posts: 59 Forumite
    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
    Owain_Moneysaver Posts: 11,392 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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.
    A kind word lasts a minute, a skelped erse is sair for a day.
  • chesky
    chesky Posts: 1,341 Forumite
    Eighth Anniversary 1,000 Posts
    What is the precise wording of your father's will?
  • johnD17
    johnD17 Posts: 59 Forumite
    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
    Malthusian Posts: 11,055 Forumite
    Tenth Anniversary 10,000 Posts Name Dropper Photogenic
    Who are the beneficiaries of the trust?
  • johnD17
    johnD17 Posts: 59 Forumite
    Trustees and beneficiaries are both me and my mum (is my understanding)


    please see the will below:


    https://unsee.cc/bisuzena/
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    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
    johnD17 Posts: 59 Forumite
    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
    nom_de_plume Posts: 962 Forumite
    Part of the Furniture 500 Posts
    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.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.