Probate being requested by a single bank account

migratingdesktop

Hi all,

My farther recently passed away and I'm helping my mum with the will and estate.

She was an executor on the will, which simply passed everything over to her. Most of their accounts were joined accounts, or accounts in her name (Although in her name he contributed all the money into these accounts) apart from one which was in his . This bank have asked for probate in order to get the money from the account in his name.

This morning I was using the online form on gov.uk to 'Complete an Inheritance Tax estate report' and it was asking me for valuations on their house (They have a joined mortgage), valuations for all the money he/they had etc.

I have two questions:

1) I only need probate for this one bank account, everything else has been passed along in the will. Do I really need to answer all the questions about the house valuations etc?

2) If the answer to question 1 is yes, when it says 'Only include DAD share of the money. If they provided all of the money into a joint account, include the full amount. If DAD was only named on a joint account but provided no money, do not include that account as part of their estate.' What are the implications of him paying all the money into the account? Because the money is getting passed from husband to wife (as stated in the will) I assume no inheritance tax will be paid as it was a joined bank account?

Thanks

getmore4less

Which bank and how much is in the account?

migratingdesktop

First Direct and less than £30,000. They've sent a letter asking for probate this week.

Yorkshireman99

migratingdesktop wrote: »

First Direct and less than £30,000. They've sent a letter asking for probate this week.

Then you have no choice but to apply for probate.Iwhat is the value of the estate? You do have to answer all the questions.If all the estate passes to your mother then no IHT is payable. However, your mother should consult an IHT specialist about how to reduce any IHT liabilty when she dies. A professional valuation of the hose might be needed rather than estate agents guesses.

Margot123

I'd recommend a RICS valuation of the property as this is invariably higher than estate agents' valuations. When it does come to sell, then hopefully you won't be caught in the Capital Gains Tax trap if the sale price is higher than the valuation given for Probate.

Tom99

[FONT=Verdana, sans-serif]As your parents were married there will be no IHT to pay so HMRC are not going to be looking at the figures with to fine a tooth-comb.

[/FONT] [FONT=Verdana, sans-serif]If the property is the family home and your mother still lives there, then there are no future CGT implications and an EA valuation would be fine, no need to spend £500 on an RICS one.

[/FONT] [FONT=Verdana, sans-serif]Regarding the joint bank accounts, I would put down 50% of the balance as your father's share. It might be different if say you were a child with a joint account with an elderly parent where all the money in the account was the parents.[/FONT]

Yorkshireman99

Margot123 wrote: »

I'd recommend a RICS valuation of the property as this is invariably higher than estate agents' valuations. When it does come to sell, then hopefully you won't be caught in the Capital Gains Tax trap if the sale price is higher than the valuation given for Probate.

On what basis do you say the RICS value would always be higher? That is a very sweeping statement!

migratingdesktop

Thanks to everyone for the responses.

In regards to the joint account, my Mother is still using this account as it's now not a joint account and solely in her name. So because of this the balance fluctuates, what's the correct figure that I need to write down then?

RADDERS

You just need to take a look at the balance on the date of your fathers death and then half it, as half is your mothers, that will be fine.

Sorry for your loss.

Tom99

migratingdesktop wrote: »

Thanks to everyone for the responses.

In regards to the joint account, my Mother is still using this account as it's now not a joint account and solely in her name. So because of this the balance fluctuates, what's the correct figure that I need to write down then?

50% of the balance on the date of your fathers death.

migratingdesktop

Thanks, although online it states:

Only include Dads share of the money. If they provided all of the money into a joint account, include the full amount.

So in this case he provided all of the money, so it would be 100% not 50%?