Closing HL account post bereavement

flopsy1973

Hi
My mum passed away last year and had a vantage account with HL with around 14 funds which I think are unit trusts. (How do i check)?
I need to close this account to share the proceeds with my brother, but with my share I plan to put the proceeds into my HL account. Will I be charged for taking it out of my mums account ?. Is now a good time to get back into the market as we seem to be on a high.
The value of my mums account is around 150K

Many thanks

xylophone

You are the executor? You advised HL of the death? You have probate?

xylophone

I have just noticed that according to an earlier post

https://forums.moneysavingexpert.com/discussion/comment/71253086#Comment_71253086

your mother died in August 2016.

Did you advise HL?

I ask because according to their T&Cs

A36 - death
Please note this section A36 does not apply to the SIPP.
On your death we will continue to rely on these Terms. If you have an
HL Vantage ISA, its tax-free status will end on your death. Your
representatives should send us either the original or a certified copy of
your death certificate. Where Accounts are held in joint names we will
treat the survivor as the only person interested in any securities or monies
and the Account will be re-registered into the name of the survivor, but
in all other respects the Account will remain unchanged. Otherwise, on
notification of death access to your Account will be frozen. Once we have
received an original copy of the grant of probate your representatives will
be able to sell or transfer your investments, but not buy investments. If
your representatives do not instruct us to close your Account within six
months we will return your assets (less any relevant annual charges for
holding investments) to your estate as either stock or cash, at our
discretion. Interest will be paid until the date of Account closure. Any
Loyalty Bonus will be paid in the form of cash and not units.

Presumably you have a list of your mother's investments.

The details for each on HL will indicate OEIC/UT/IT etc.

flopsy1973

Hi
Yes I did advise them soon after of my mothers death just it has been this long to sort other issues out and this is the last account to close now.
Yes I am the executor and have probate


So back to my original question would it be better to take out as cash what other options ?

Keep_pedalling

flopsy1973 wrote: »

Hi
Yes I did advise them soon after of my mothers death just it has been this long to sort other issues out and this is the last account to close now.
Yes I am the executor and have probate

So back to my original question would it be better to take out as cash what other options ?

As you have to split the proceeds with your brother keep it simple, take the cash.

xylophone

Your brother wants the cash?

You want to keep the investments?

Sell half of each investment and pass the proceeds to your brother.

Enquire of HL how to transfer the investments in specie to your HL account.

If you don't wish to keep the investments, sell all, transfer half the proceeds to your brother and enquire of HL about transferring the cash to your HL account.

Check on CGT position.

https://www.co-oplegalservices.co.uk/media-centre/articles-jan-apr-2017/capital-gains-tax-payable-by-executors/

flopsy1973

CGT had not considered that so will we be liable for this with this amount. Also I will be sharing another 90k between the 2 of us from other investments that I have closed and have moved into a separate holding account over the last year.
With some of accounts I have shared it out directly with my brother over the last year?
How do I stand here in tax implications i thought as we are exempt from IHT it would just be matter of sharing out estate

thanks

flopsy1973

flopsy1973 wrote: »

CGT had not considered that so will we be liable for this with this amount. Also I will be sharing another 90k between the 2 of us from other investments that I have closed and have moved into a separate holding account over the last year.
With some of accounts I have shared it out directly with my brother over the last year?
How do I stand here in tax implications i thought as we are exempt from IHT it would just be matter of sharing out estate.

Many thanks ]

dales1

CGT only applies to gains which have arisen since the date of death.
IE only to increases in the value of the investments between that date and the date of sale.

The link in Xylophone's post will hopefully explain it for you, and the reliefs that are available.

flopsy1973

Ok thanks for that, I dont think there was much gain in the assets between her death and when the investements were cashed in.
So do i include interest on her various bank accounts?
The HL account i was originally asking about this had a large proportion in ISA's these will be exempt?

The grant of probate has been made in my name even though my brother will be sharing the proceeds equally. Also my son has been left a sum of money by her.
So should i have put their names on the probate as they will have their allowance to use too then, or as administrator can i just give them the money? how is this all declared i could do with some further information

xylophone

There is a difference between an executor and a beneficiary even though an executor can also be a beneficiary.

With regard to ISA tax status on death, see HL T&C's and post 3 above.

Assets like shares and houses have a probate value.

The executor would compare the value at date of disposal with the probate value to establish any gain.

The link above discusses using the executor's CGT allowance as against a beneficiary's own CGT allowance.


When disposing of assets, an Executor should be mindful of whether a sale will result in Capital Gains Tax being payable. If so, an Executor should consider whether a sale on behalf of a beneficiary/beneficiaries in their (ie the Executor's or Executors')capacity as Bare Trustee would mean that Capital Gains Tax could be avoided.

For example, if a property or shares were being sold at a capital gain of over £11,100 it may be advantageous to appropriate (ie transfer in specie) the property, or shares of the property, to the beneficiaries prior to sale. This way each beneficiary would have their own annual Capital Gains Tax allowance available to offset against any gain.

For more information see How to Be an Executor of a Will.

If you are not sure of how to proceed, you could consult a solicitor/tax accountant.