Executor Liability for council tax

badger09

PHEW

Thanks CIS

As a retired Senior Tax Inspector, well used to convoluted legislation;), I'd struggle with that.

How on earth is Joe Public expected to understand?

CIS

badger09 wrote: »

PHEW

Thanks CIS

As a retired Senior Tax Inspector, well used to convoluted legislation;), I'd struggle with that.

How on earth is Joe Public expected to understand?

I suspect (and the same is likely for tax) that the legislation is simply written to be impenetrable to all and to keep the administrative courts and tribunals in work

getmore4less

found what I was looking for it was to do with CGT.

https://www.gov.uk/hmrc-internal-manuals/capital-gains-manual/cg30760

I read that as you don't have any beneficial interest until you get the house even if you are named beneficiary.

getmore4less

TIllyT wrote: »

Thank you for all your responses, the amount is not arrears, we received the exemption for 6 months (it’s literally just ended) the house is still in mums name and is in England. She passed away in February and probate was granted a few months later, the bill was only sent a couple of weeks ago by the council based on the calculations for this year. The house was in disrepair and so we needed to fix it up ourselves to make it saleable which took about 3 months as there wasn’t funds to pay builders then we hit the quietest time of the year for selling houses. Hopefully the price reduction will help. The funeral expenses were prioritised and paid shortly after which essentially took all funds ( this is the first time I’ve been an executor and I believed these were the first priority). I will try the personal undertaking route as this seems a good option along with the suggestion to drop a note to the councillor. I’m sure being an Executor when people have reasonable savings and income is fine but when limited funds it’s very difficult to navigate without advice. Thank you all again

There is no requirement to improve a property within an estate that was a voluntary decision and could be considered neglegence by the executor if there was insufficient funds to complete the process.

Often the correct solution is to sell the property as is or allow the beneficiaries take over the liabilities.

Probate + 6 months is long enough as you can delay probate quite some time while you establish the assets within the estate and should know by then what you are doing with them.

Keep_pedalling

getmore4less wrote: »

There is no requirement to improve a property within an estate that was a voluntary decision and could be considered neglegence by the executor if there was insufficient funds to complete the process.

Often the correct solution is to sell the property as is or allow the beneficiaries take over the liabilities.

Probate + 6 months is long enough as you can delay probate quite some time while you establish the assets within the estate and should know by then what you are doing with them.

Yes it does seem odd that the executors are willing to pump money into doing the house up but not pay the CT bill.

Keep_pedalling

I think where the council are coming from here is that they know the executors have spent money on doing up the house to increase its value, and like any other developer are responsible to paying CT.

badger09

getmore4less wrote: »

There is no requirement to improve a property within an estate that was a voluntary decision and could be considered neglegence by the executor if there was insufficient funds to complete the process.

Often the correct solution is to sell the property as is or allow the beneficiaries take over the liabilities.

Probate + 6 months is long enough as you can delay probate quite some time while you establish the assets within the estate and should know by then what you are doing with them.

Keep_pedalling wrote: »

Yes it does seem odd that the executors are willing to pump money into doing the house up but not pay the CT bill.

OP hasn't answered my question:

badger09 wrote: »

Are you also the beneficiary?

This is from East Devon Council, which I have dealt with as executor recently regarding exemptions:

"Unoccupied properties - apply online
.....

F - Forms part of the estate of a deceased person and either probate or letters of administration have not been obtained, or if they have been obtained, a period of six months has not elapsed since they were. It doesn't matter whether the property is furnished or unfurnished.
This exemption does not apply if the deceased left the property to a beneficiary in their will or the beneficiary and executor are the same person(s). In this case the beneficiary can become liable for Council Tax at the date of death or probate, as they are considered to become the owner.

It is important that the executor(s) keep(s) us informed of:

• the date probate is granted,
• details of the transfer or sale of the property or the end date of the tenancy,
• when the estate is settled. Where a Council Tax bill is due to be paid, the executor is responsible for making payment. The executor is not personally liable for the Council Tax charge and payment should be made from available funds within the deceased estate. If there are no funds within the estate, the executor should contact us immediately.

During this time we may contact the executors periodically to review entitlement to the exemption."

This suggests that if you are both executor and beneficiary, you can become liable.

Perhaps CIS will clarify.

If she is beneficiary, that could explain her actions.

getmore4less

They answered(partially) by saying they got the class F exemption.

getmore4less

Keep_pedalling wrote: »

I think where the council are coming from here is that they know the executors have spent money on doing up the house to increase its value, and like any other developer are responsible to paying CT.

I think it is simply that the class F ran out and they don't have any other qualifying exclusion.

We moved a student(family member) in to a house we had when we ran out of other exclusions.

Flugelhorn

getmore4less wrote: »

We moved a student(family member) in to a house we had when we ran out of other exclusions.

So there is some financial benefit to these random students :rotfl::rotfl:

I think the point about being de facto the owner of the property if you are both executor and possibly sole beneficiary is interesting - do the council have any right to see the will? I just told the council I was the executor and didn't offer any info about the ownership of the property other than to say it would be up for sale very shortly