Inheritance question - funds issue 12 July at 12:13PM in Deaths, Funerals & Probate 3 replies 331 views

LR90

Afternoon all,

would welcome some guidance around August last year I was contacted and informed that I was to be a recipient to a share of an estate.

probate had already been issued and shortly after confirming my identity was issued with an interim payment, information from the solicitors was patchy regarding further amounts.

in addition to this I obtained a copy of the probate from the registry which confirmed the value of the estate and therefore approximately the amount of IHT due ect.

since then there has been a further interim payment, but also where we hit a snag.

my understanding is that if IHT has been paid then the estate should be liquid and settlements made soon after, yet in this case the solicitor is attempting to source share certificates - originally they'd hoped to sell in November 19 but this was still continuing into March 20

since we’ve had covid and a market which is valued significantly less than pre covid times.

my understanding is that IHT paid can not be adjusted post six months of payment is this correct and therefore if the markets ha e reduced in value then the amount of tax paid on the original value is lost to the recipients?

im at a loss what to do, most of my calls and emails for an update go un responded and all I wanted to have was clarity on what was left to be distributed and when - whilst it is of course a blessing to be met with an unexpected inheritance my ability to plan for my families future is hampered by not knowing much about how much and the solicitors are not assisting - so do I have any other avenues for assistance?

xylophone

my understanding is that if IHT has been paid then the estate should be liquid 

Not at all - for example, a relative of mine was the executor of his relative's will.

There was a substantial IHT bill.  It was possible to meet the bill through the Direct Payment scheme from cash in bank accounts and probate was issued.

Other assets in the estate included shares. Selling those can take time and these were non certificated shares.

It appears that your testator owned certificated shares.  Those certificates need to be located before the shares can be sold.

With regard to the probate value of the shares being higher than the sale value, 

https://www.clarionsolicitors.com/blog/reclaiming-inheritance-tax-when-the-value-of

LR90

xylophone said:

my understanding is that if IHT has been paid then the estate should be liquid 

Not at all - for example, a relative of mine was the executor of his relative's will.

There was a substantial IHT bill.  It was possible to meet the bill through the Direct Payment scheme from cash in bank accounts and probate was issued.

Other assets in the estate included shares. Selling those can take time and these were non certificated shares.

It appears that your testator owned certificated shares.  Those certificates need to be located before the shares can be sold.

With regard to the probate value of the shares being higher than the sale value, 

https://www.clarionsolicitors.com/blog/reclaiming-inheritance-tax-when-the-value-of

Thanks, I’ll take a read one thing that jumps out however is that shares need to be sold within 12 months of date of death in this example 

Year of death 2017
Probate issue end of 2018
interim payment end of 2019

Brynsam

LR90 said:

im at a loss what to do, most of my calls and emails for an update go un responded and all I wanted to have was clarity on what was left to be distributed and when - whilst it is of course a blessing to be met with an unexpected inheritance my ability to plan for my families future is hampered by not knowing much about how much and the solicitors are not assisting - so do I have any other avenues for assistance?

Every time you write or call you are delaying things and adding to costs, so why the impatience? Just wait.