Inland revenue clearance

aimeealicia11

Hi
I am a beneficiary in a family members will. It is now 14 months since he died, his property was sold 5 months ago. Statutory notices were placed Nov 2017 and all money has now been collected.
The executors are a solicitor and a family member. The family member isn't prepared to have any form of contact with any of the beneficiaries so any request for an update has to be via the solicitor.
The last update from the solicitor said that he needed clearance from Inland Revenue before he could distribute the estate. Is this usual practise for an estate which is valued at below the inheritance tax threshold?
Thanks in anticipation.

Tom99

[FONT=Verdana, sans-serif]If tax could be outstanding and not yet agreed there is no reason why an executor cannot make a partial distribution and hold back enough to cover the max possible tax bill.[/FONT]
[FONT=Verdana, sans-serif]Do you know if the house was sold for more than the probate value used? That might create a CGT bill even if no IHT is due?[/FONT]

aimeealicia11

Thank you for your reply.
The house was sold for 135k and the entire value of the estate was 238k, according to the probate grant. The deceased would also have been able to make use of his wifes IHT threshold, if needed, she died in 2014 leaving everything to him.

AnotherJoe

Ask the solicitor when they expect this will be forthcoming.
I dont think i ever received anything called "clearance" from HMRC when i did my mothers probate. The only hassle i had was from DWP. Having said that i havent sold her property yet. But like yours, the total value was under the IHT threshold.

aimeealicia11

Thank you. If I haven't heard anything from the solicitor, by the end of this month, then I will email him and ask for a further update.

Yorkshireman99

aimeealicia11 wrote: »

Hi
I am a beneficiary in a family members will. It is now 14 months since he died, his property was sold 5 months ago. Statutory notices were placed Nov 2017 and all money has now been collected.
The executors are a solicitor and a family member. The family member isn't prepared to have any form of contact with any of the beneficiaries so any request for an update has to be via the solicitor.
The last update from the solicitor said that he needed clearance from Inland Revenue before he could distribute the estate. Is this usual practise for an estate which is valued at below the inheritance tax threshold?
Thanks in anticipation.

Time to serve the executor a with a formal complaint. And the solicitor.

aimeealicia11

Really Yorkshireman99?
This is the first time I've ever been a beneficiary in a will, I've had to research quite a lot but I'm still not as knowledgeable as I'd like to be. Would that be your next move?

Flugelhorn

Unless they are wondering if there will be an income tax bill? If so they could distribute most of the estate and then keep an amount of money back to cover that

Yorkshireman99

Flugelhorn wrote: »

Unless they are wondering if there will be an income tax bill? If so they could distribute most of the estate and then keep an amount of money back to cover that

After that amount of time and the unreasonable behaviour of the executor at the very least a firmly worded but polite letter is the very least I would do. Inland Revenue clearance is usually only done if the estate is paying IHT and that precedes probate

Flugelhorn

Agree it does seem odd - I agree with the polite but firmly worded letter

aimeealicia11

Thank you for your replies.
Would you be able to give me an idea of what I should say in a letter to them please?