Executor needing money back from beneficiaries

jude_pmc

I foolishly distributed some of my parent’s estate money to the beneficiaries before all the house tax has been paid. The inherited house has now been sold, and some of us have paid back our share to pay the tax but two always have an excuse why they can’t pay this month etc.

The house has now been sold for over a year but I have not told the tax office because I haven’t the money to pay the rest of the tax. We are 6 years into the maximum 10 year instalment payments. When I do the yearly estate’s tax assessment I put in a return of £0 income, which is true.

If I give this situation a bit more time to resolve am I acting illegally? Can I have my savings grabbed? Might I be made to pay a fine? Might I end up with a court case against me?

Thanks for any advice

Keep_pedalling

Oh dear, as the executor you are responsible for paying the tax, so you may end up paying and having to case the other beneficiaries through the courts to get it back.

Are these beneficiaries your siblings?

Margot123

Have you asked 'nicely' via email, text, friendly letter?

If so, forget that approach, and send them a letter by recorded delivery written in a formal style. Give them 28 days to pay or you will be instructing a solicitor.

That might give them a nudge.

Crabapple

As soon as the property has sold the instalment option ends so you really have no choice but to press them and you must pay the tax as soon as possible.

Keep_pedalling

Crabapple wrote: »

As soon as the property has sold the instalment option ends so you really have no choice but to press them and you must pay the tax as soon as possible.

Even worse after all this time you may have a CGT bill to pay as well.

Yorkshireman99

jude_pmc wrote: »

I foolishly distributed some of my parent’s estate money to the beneficiaries before all the house tax has been paid. The inherited house has now been sold, and some of us have paid back our share to pay the tax but two always have an excuse why they can’t pay this month etc.

The house has now been sold for over a year but I have not told the tax office because I haven’t the money to pay the rest of the tax. We are 6 years into the maximum 10 year instalment payments. When I do the yearly estate’s tax assessment I put in a return of £0 income, which is true.

If I give this situation a bit more time to resolve am I acting illegally? Can I have my savings grabbed? Might I be made to pay a fine? Might I end up with a court case against me?

Thanks for any advice

You need urgent, paid for, professional advice on how to sort the mess out and minimise the penalties.

Tom99

How much do you need to recover?

chesky

... some of us have paid back our share
... but I have not told the tax office

Where have you paid the money?

Margot123

Yorkshireman99 wrote: »

You need urgent, paid for, professional advice on how to sort the mess out and minimise the penalties.

Yes, heed this advice rather than waiting for well-intended responses from random strangers.

A few pounds spent now with a solicitor will save a lot of trouble further down the line and will show HMRC you are dealing with the problem rather than avoiding payment.

jude_pmc

Crabapple wrote: »

As soon as the property has sold the instalment option ends so you really have no choice but to press them and you must pay the tax as soon as possible.

Many thanks to everyone. With this info i can put pressure on them without just appearing bossy. Yes thiese are my siblings!

getmore4less

Was there not enough from the house sale to pay the tax?