Re wills and IHT on first death

joe134

Thanks eskbanker, need to go to specsavers.couldn’t find it, read it when googling .thought it was wrong thread.:beer:

G_M

Don't make the solicitor an executor - costs will mount up fast.

Name a couple of chidren or 3 (one or more can always declare themselves as Executor with Power Reserved, leaving just one or two to manage things).

If the Executors need help, they can always employ a solicitor themselves for specific advice or tasks, but at least they then have control of when/how to use the professional.

Donating 10%+ of the Estate to charity reduces the IHT tax rate from 40% to 36%. Just a consideration.

Many charities also pay the solicitor's costs for drawing up a will. Of course, they hope you will leave something to them in return. eg

https://www.cancerresearchuk.org/get-involved/donate/leave-a-legacy-gift-in-your-will/free-will-service


https://rnli.org/support-us/give-money/leave-a-gift-in-your-will/free-wills-service

joe134

Tom99 wrote: »

As said, no IHT no matter how much you own/leave to each other.
You say house in joint names but check it's joint tenants not tenants in common. You can do this by checking the Title Register, if it's held as tenants in common there will be the following restriction under Part B Proprietorship Register:

'RESTRICTION: No disposition by a sole proprietor of the registered estate (except a trust corporation) under which capital money arises is to be registered unless authorised by an order of the court.'

It's probably a good idea to leave a copy of the title with your will and other documents.
With regard to the will it's probably a minimum to say that if your wife dies before you your estate will go in equal shares to your children, same for your wife's will.

Re Title.
I have just checked what I presumed was the Title, but it is land registry stating both our names, address, plans of land and several covenants.
No mention joint tenants or in common !
Obviously didn’t check when I received them 25 years ago.
How do I check the Title register, as the deeds are with solicitor, miles away, but there, and obtain a copy?

jamei305

joe134 wrote: »

Re Title.
I have just checked what I presumed was the Title, but it is land registry stating both our names, address, plans of land and several covenants.
No mention joint tenants or in common !
Obviously didn’t check when I received them 25 years ago.
How do I check the Title register, as the deeds are with solicitor, miles away, but there, and obtain a copy?

That's what you're after, the title from the land registry. The default is joint tenants. You can be tenants in common only if a specific clause is added, which is sounds like it wasn't (in short only the equitable title can be held as tenants in common whereas the legal title is always joint tenants).

joe134

G_M wrote: »

Don't make the solicitor an executor - costs will mount up fast.

Name a couple of chidren or 3 (one or more can always declare themselves as Executor with Power Reserved, leaving just one or two to manage things).

If the Executors need help, they can always employ a solicitor themselves for specific advice or tasks, but at least they then have control of when/how to use the professional.

Donating 10%+ of the Estate to charity reduces the IHT tax rate from 40% to 36%. Just a consideration.

Many charities also pay the solicitor's costs for drawing up a will. Of course, they hope you will leave something to them in return. eg

https://www.cancerresearchuk.org/get-involved/donate/leave-a-legacy-gift-in-your-will/free-will-service



https://rnli.org/support-us/give-money/leave-a-gift-in-your-will/free-wills-service

Thanks GM, no intention of doing so, I will get Son and Daughter to do it, let them earn their inheritance.:rotfl:
Knowing them, they will just get a solicitor to do it.
I am even my Sons executor, how dafts that, at my age.
Billy no mates.
You can choose your friends etc etc !
Might just leave the lot to charity :-)

Tom99

joe134 wrote: »

Re Title.
I have just checked what I presumed was the Title, but it is land registry stating both our names, address, plans of land and several covenants.
No mention joint tenants or in common !
Obviously didn’t check when I received them 25 years ago.
How do I check the Title register, as the deeds are with solicitor, miles away, but there, and obtain a copy?

You are right, there is no mention of joint tenants/tenants in common. You have to see if the restriction I quoted above is there. If it is then you hold as tenants in common, if it's not there you hold as joint tenants.

Boleyn19

It is really good that you are sorting out your finances to make things easier for your wife or yourself and then your children. I have been the executor/beneficiary of my parent's estates and helped my husband with his sister's recently. The experience has made us realise a few things that would be helpful for anyone sorting out their finances.

* Have a clear will.
* Sort out LPAs.
* Have all your financial, utilities information filed so the executors can find it easily.
* Only have executors who are beneficiaries if you can as it is a huge amount or work and can incur large financial outlays.

And if your restate is likely to be above the IHT threshold the IHT has to be paid before grant of probate within 6 months. The IHT on only a few assets (eg the house) can be paid in instalments but you still need to find 10% within 6 months.

* Executors who are also beneficiaries is even more important as there will be more work and possible payment of IHT in advance of probate from their own resources.
* Set up ways of minimising IHT on the second death such as Trusts, life assurance.
* Have enough cash in bank accounts/NS&I that can be paid direct to pay IHT liability in advance of probate.

I'm in the process of sorting our finances out.

joe134

Thanks all.
I did the LPA,s myself, twice, as I changed my mind later !
Quite easy.
Putting everything together in the safe so my wife/me or kids can just put hands on them.
I have always been methodical, accounts changed often, got records of them all.
Taxes in order.
Cannot stand untidy affairs.
Things done straight away, not tomorrow, that’s the only thing I doubt is the kids being executors, they are not organised,always manana’

However, it’s their inheritance, it’s their money they are playing with when we are gone.
One things certain, there’s no way my kids, grandkids will be able to pay any inheritance tax upfront, unless I give it too them first, and I/we won’t be here

There’s plenty of cash in accounts to pay IHT, but if the executors cannot access it before probate, how does it get paid?
Catch 22!
Or am I missing something?
I am going to have try and ensure none is payable, even if I have to spend some, or give it to charity!
Life seemed so much easier when we had nowt!
It’s my wife being left to do it that’s my main concern.
There is certainly more to it than meets the though, I have learned more by reading posts of other people’s experiences, than official sites.
Can only do ones best:beer:

G_M

Bank accounts etc get frozen on death, so accessing money for ongoing costs eg maintaining a property and paying IHT is a problem.


But joint accounts do not get frozen......

joe134

G_M wrote: »

Bank accounts etc get frozen on death, so accessing money for ongoing costs eg maintaining a property and paying IHT is a problem.


But joint accounts do not get frozen......

Thanks G-M the thing I am confused about, and read a case just lately, when last one dies, the executor has to pay IHT before probate is granted.
The norm is if a bank a/c of the deceased has enough cash in it to pay IHT , then the Hmrc can take it from that directly, not through the executor, then probate is granted, no problems it would seem.
That sounds fine,BUT, how does the executor or Hmrc get access to the bank, a/c to pay it if the are frozen ?


almost all of mine /ours are fixed rate a/c’s, isas , or online instant savers linked to main current a/c .
They are all written down.
There’s plenty of cash in instant saver a/c’ to pay the IHT. If any is due.
All our money, are in cash based a/c’s , no insurance policies, etc.
£600k in total, so no lack of cash, just the kids as executors, cannot access it before probate, OR, Can they to pay the IHT ??