Solicitor not releasing house sale funds - Probate

marcusjames

My father passed away last August and probate was finalised in April. I recently sold his home and there is an IHT liability to clear. The solicitor (also a joint executor) is not releasing the excess funds to me as they claim the house sold for more than quoted on the probate forms. I can justify the increase as I have made alterations prior to sell, but nonetheless, I am frustrated that they refuse to release the funds. I have asked them to consider the higher value, clear the IHT and I can take it up with HMRC later. They refuse to release the monies until the final value is approved by HMRC.

I have signed oaths to say I will pay the IHT and paying interest on the grant of credit. I see no benefit of delaying clearing the IHT bill but I fail to see why the excess can be withheld. I have beneficiaries chasing me for their money and I fear they think I'm the bottleneck.

Is this the norm? Thanks

Savvy_Sue

It is not unknown for solicitors (or indeed any other executor) to behave in this way.

Tom99

As joint executors you should hold back the possible 40% IHT on the increase in the sold price over probate plus say a few £1,000 to cover any last bills.
The rest you should be able to pay as an interim distribution.
What to you mean by excess funds that the solicitor will not release, the whole disposal proceeds less the IHT bill which they have released?
If the original probate value is confirmed there may be a CGT bill for the estate to pay but this will be a lot less then 40% on the excess.