Simple Will, IHT and Probate

Savvy_Sue

It sounds as if you need to take the will to probate anyway, but in this situation I would do so, because your late husband had two sons. If he had died without a will, both would potentially benefit (depends on the size of his estate). 

It means that if, in a few years time, something prompts the estranged son to check whether he's missed out, he will see that he did not. It may be unlikely, but you never know. 

mavisangelica

Savvy_Sue said:

It sounds as if you need to take the will to probate anyway, but in this situation I would do so, because your late husband had two sons. If he had died without a will, both would potentially benefit (depends on the size of his estate). 

It means that if, in a few years time, something prompts the estranged son to check whether he's missed out, he will see that he did not. It may be unlikely, but you never know. 

Thanks Savvy_Sue. The more I have been thinking about it the more it makes sense. Also there are more things that look like they will need probate (or will be easier to sort with probate)

badger09

mavisangelica said:

I am currently working through my late husband’s affairs to eventually execute his will. I am in the early stages and am busy collating everything together I think that I know what I am doing but have a few basic questions and need my basic understanding confirmed (or not)

 I have read through form IHT205 which has helped a lot. From this I realised that I complete this and the information that it provides then feeds on to the PA1P probate form.

 

I still need to submit IHT205 even if I don’t need to pay inheritance tax?

 

The house (the Land Registry document does not state that we are Tenants in Common) and the joint bank and savings and investment accounts are entered onto the IH 205 but are discounted for probate purposes.

 

The will is pretty straight forward – I am the executor and only myself and our son benefit from the will. Son inherits shares, premium bonds and sole bank/savings/investments.

 

Questions:

.............

Your questions have been answered by others but I think there might still be some confusion.

You need to enter your late husband's share of all jointly owned assets on form IHT205 in addition to his sole assets.

xylophone said:

The funeral bill can be presented to your husband's bank and paid before probate is granted.
Did your husband leave his interest in the property to you?

Son inherits shares, premium bonds and sole bank/savings/investments.

It is likely that you will require probate to deal with the shares and premium bonds.

You should keep a note of how much of your husband's nil rate band has been used in the bequest to your son.

xylophone said:

as we are joint 

You mentioned Tenants-in-Common in your post above.

If the property was held as joint tenants, then the property falls into your sole ownership as survivor. 

https://www.gov.uk/government/publications/deceased-joint-proprietor-djp

I didn't know that you couldn't transfer premium bonds - only cash them in.

https://www.nsandi.com/what-do-i-do-if-nsi-customer-has-died

The Bonds can remain in the Draw for up to twelve months after the owner has died - see above.

OP said the Land Registry document did not state they were Tenants in Common 

OP
Is there a clause on the Land Registry doc saying 'No disposition by a sole proprietor'?

getmore4less

mavisangelica said:

Thanks poppystar. Yes son is an adult (still living at home though)
I know that the funeral expenses come out of the estate and should be settled before anything is distributed but just wondering if it should come from the bank and savings accounts in sole name (which will eventually go to son). Or if, because the sole bank accounts are particularly mentioned in the will (ie it states that any bank account in sole name should go to son) then the debts should come out of the residual estate and I can pay them in lieu of the residual estate as there is no cash in the residual estate but there is a car.

You need to be careful here as you should identify the residual estate value(everything that drops through) and use that for funeral, expenses and debt payments. If the residual estate is not sufficient to cover the costs then there may need to be abatement of legacies(there are rules for how this is done).

 https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm12086