Mother Dying - Can we do the probate?

AnotherJoe

Unless there is going to be very little or no CGT then waiting will be the best plan, you can after all cash the investments in after probate and before IHT is due, dont you have 6 months to pay ?

PasturesNew

As you have warning, there is time to get everything sorted out ahead of time.

The problems come where things are complicated, where peoples' accounts and things are completely unknown. You will be able to know of all bank accounts, amounts, any debts, suppliers/providers etc.

You can do this yourself.

It becomes complex when somebody dies and they have complex matters, or chaotic matters, to deal with. How many bank accounts? With which banks? In what names? Where is money coming in from? Employment? Pensions? Investments/shares? Business incomes? Rental on properties owned?

For many, life is simple. 1-2 bank accounts, a little savings account, money in is from one source ... and all the figures are known as you have all the statements in front of you.

For most, any property value is simple and lowish. One house, lives in it, value pretty much known, no problems expected.

AnotherJoe

Twointhebush wrote: »

My wife's mother is terminally ill. Is it a good idea for us to sort out the probate without a solicitor? Or at least partly without a solicitor? Is any saving worthwhile?

Thanks

Unless your mother's estate is large and complex the process is simple and straightforward, more so than you'd think. I did my mother's in a few days saving £1500. Bear in mind, most of the probate process consists of collecting information and the solicitor if you use one, will have you running around doing that anyway so the actual work you have to do that a solicitor would charge well into 4 figures for, consists of filling a couple of forms in as youlll have gathered the raw data which is the bit that takes time. If you get stuck you can ask for help from their helpline (AFAICR) and of course here.

Apodemus

AnotherJoe wrote: »

Unless there is going to be very little or no CGT then waiting will be the best plan, you can after all cash the investments in after probate and before IHT is due, dont you have 6 months to pay ?

...but don’t you need the IHT paid to get the probate?

getmore4less

Apodemus wrote: »

I’m no expert but that is my understanding of it: Only IHT is due on the value of the estate at death. Then Income tax on any estate income and CGT on any uplift in capital value between death and granting of probate (but the estate has no Income Tax or CGT personal allowances, so chargeable on all gains between death and probate.)

So, selling investments just before death can result in a higher tax charge, than selling just after death. Of course, this might be mitigated at least in part, if the estate then has the cash to quickly pay the IHT and avoid loans or interest on late payment.

Estates get £12k CGT allowance this year

Given the base is reset at DOD and all the preparation can be done in advance there is often no need to realise gains before the base gets reset unless the person needs funds.

liquidating funds to pay IHT is often possible before probate