How do you know the value of someones 'Estate'?

karlc11

Hello,

I need some advice on a Will if that's ok.

When my Dad passed away, I wasn't involved in any aspect of his Will. However I managed to find it online, give it a read and I am quite confused.

It says that my mum was left 50% of the family home, my brother 25% and myself 25%. It then goes on to say "I give the rest of my estate subject to debts and funeral expenses to be shared equally between my two sons" one of which is myself.

The 'Estate' as listed in the documents I have is very large, a six figure sum. However when the money was payed out, my brother and I only received a few hundred pounds each. Why did we receive such little?

Any help much appreciated!

Yorkshireman99

Have you spoken to the executor? What was the house worth and what was the total estate value?

babyblooz

If mum is still living in the house, then it may be that the estimated value of the house is included in the six figure sum. If that is how it is, then 25% of the value of the house should be yours eventually, when mum has passed away and the house is sold. If he left little in terms of cash, then that may be why you only received a small amount of money.

karlc11

Thanks for the replies. It's all very confusing.

The will and value of the estate was made when my dad was alive, totaling a certain amount.

Then the house was only valued after he died. So how do you get a valuation of an estate without valuing the house first? The will reads as though the 'Estate' is money, not including the house but I don't know how I find out..

karlc11

When the Will was written, estate was valued at 455. The house wasn't then valued until he passed and was valued at between 200 and 500 which appears to be a vary vague valuation to me and heightens suspicion about the whole situation...

karlc11

Should I seek legal advice? There surely must be a breakdown of money, assets, the house ect...surely it isn't all this vague when dealing with someones will. I just want a clear breakdown of everything

Tom99

[FONT=Verdana, sans-serif]Who was the executor? Ask them for a copy of the estate accounts, which as residual beneficiary you are entitled to.

[/FONT] [FONT=Verdana, sans-serif]From the figures you have given its possible Inheritance Tax might have been due and all of that would come out of your residual cash since the house has not been sold. That seems fair enough since IHT would not be due on your mother's share.

[/FONT] [FONT=Verdana, sans-serif]Were both Gross and Net values of the estate mentioned in the copy of probate you downloaded?

Was the property mortgaged and did the will state how that mortgage should be repaid?
[/FONT]

Keep_pedalling

As a residual beneficiary you are entitled to a copy of the estate accounts. If the executor is still around ask for one.

nom_de_plume

To give an accurate answer we would need to know a lot more about your father's assets and particularly how they were held / owned. It could be that any monies were in joint accounts and passed direct to your mother and that the house was owned as joint tenants and became your mother's similarly. Also have you read the whole will and are there any life interest clauses on the house?

karlc11

Thanks for the replies.

The Gross and Net value of the 'estate' was the same amount.

The house was owned solely by the deceased. I have since seen the deeds of the house and my name is on there.

The executor is my mum and as you can imagine it's a little awkward asking about such a subject and I don't feel as though I'd get an accurate answer. There must be another way of me getting a breakdown of any other assets/monies.

If I had to pay inheritance tax, as one of only 2 beneficiaries of the 'estate' surely the authorities would have had to contact me in some way and tell me about the inheritance tax.

If any money / assets were in joint accounts with my mum, then surely she would have only received 50% of this and my brother and myself the other 50%? Surely she doesn't just automatically just receive all of the money?

Something else which seems odd, is in the Will it mentions my mum, brother and me as being the Executors and Trustees, however in the probate it only mentions my mum as being Executor.. Surely if in the Will it mentions me as executor I should have been involved in everything..?

Tom99

[FONT=Verdana, sans-serif]Inheritance Tax is paid by the executor before distributing the estate.

[/FONT] [FONT=Verdana, sans-serif]Money in joint accounts goes direct to the surviving joint account holder (bypassing the will) and is not part of the amount for which probate is granted. However the deceased share of the joint account is still included for Inheritance Tax calculations.

[/FONT] [FONT=Verdana, sans-serif]If you were named as an executor in the will then when applying for probate your mother would have had to declare the reason you were not joining in the application, probably one of the following:

[/FONT] [FONT=Verdana, sans-serif][FONT=Myriad Pro, Myriad Pro, sans-serif]C [/FONT][FONT=Myriad Pro, Myriad Pro, sans-serif]– Power reserved: they have chosen not to apply, but reserve the right to do so later. [/FONT][/FONT]
[FONT=Times New Roman, serif][FONT=Myriad Pro, Myriad Pro, sans-serif]D [/FONT][FONT=Myriad Pro, Myriad Pro, sans-serif]– Renunciation: they have chosen not to apply, and give up all rights to apply. [/FONT][/FONT]

"Note 3.7 – we need to know
why any executors aren’t
included in this application.
If any executors aren’t
included, you must notify
them of the application
in writing."

[FONT=Myriad Pro, Myriad Pro, sans-serif]Awkward as it may be you need to ask your mother for a copy of the estate accounts, maybe say you need them for CGT purposes in the future.

[/FONT] [FONT=Verdana, sans-serif]Edit: Its odd that the gross and net probate amounts were the same. There is normally a difference made up of funeral costs and other debts[/FONT]