Probate and solicitors/specialists

Flugelhorn

noclaf said:

I have some further questions and would welcome some thoughts/advice:
For any cash that's held in my father's bank accounts, is there an amount threshold above which it is a legal requirement to have a solicitor or any other legal specialist involved? Or can the executor simply continue with probate without need for solicitors? Aside from AML and risk of fraud what other legal implications need to be considered for the process of a bank dispatching funds to the executor? Too many words sorry..in layman's terms what does a bank need before releasing funds to the executor and does the amount of funds involved make the process any more complicated or longer?
Next question: where multiple beneficiaries are listed in the will and assuming that the value of the estate and/or financial assets being distributed are not of the same value is it the responsibility of each beneficiary (and/or executor?) to ensure their IHT obligations are completed and taxes paid where applicable? What is the IHT threshold...is it 325k or more? Also where a share of a property is moving to one of the beneficiaries does the tenancy type (joint Vs in common) of the house affect IHT?
Thanks for all the input so far it's been v helpful and apologies if repeating any questions already answered. 

There is no limit to the amount that the executors can handle provided they have probate. Without probate many banks will release funds to an executor on sight of the will + death cert before probate is granted - this varies in amount 20-30K not being unusual, some are more / less.
IHT has to be sorted by the executor before probate / distribution of the estate funds. 

xylophone

Property is tenants in common

The value of your father's half share will need to be reported on the probate forms.

Presumably you will record your proprietorship at the  Land Registry with Form A restriction as your mother remains a tenant-in -common.

noclaf

xylophone said:

Property is tenants in common

The value of your father's half share will need to be reported on the probate forms.

Presumably you will record your proprietorship at the  Land Registry with Form A restriction as your mother remains a tenant-in -common.

Maybe a silly question but to ensure the valuation of my father's share of the property is accurate do I need a specific type of surveyor to value the house? I know the 'ballpark' value based on similar houses on Zoopla/Rightmove from our road but there is room for error with a 'guesstimate'.

noclaf

Flugelhorn said:

noclaf said:

I have some further questions and would welcome some thoughts/advice:
For any cash that's held in my father's bank accounts, is there an amount threshold above which it is a legal requirement to have a solicitor or any other legal specialist involved? Or can the executor simply continue with probate without need for solicitors? Aside from AML and risk of fraud what other legal implications need to be considered for the process of a bank dispatching funds to the executor? Too many words sorry..in layman's terms what does a bank need before releasing funds to the executor and does the amount of funds involved make the process any more complicated or longer?
Next question: where multiple beneficiaries are listed in the will and assuming that the value of the estate and/or financial assets being distributed are not of the same value is it the responsibility of each beneficiary (and/or executor?) to ensure their IHT obligations are completed and taxes paid where applicable? What is the IHT threshold...is it 325k or more? Also where a share of a property is moving to one of the beneficiaries does the tenancy type (joint Vs in common) of the house affect IHT?
Thanks for all the input so far it's been v helpful and apologies if repeating any questions already answered. 

There is no limit to the amount that the executors can handle provided they have probate. Without probate many banks will release funds to an executor on sight of the will + death cert before probate is granted - this varies in amount 20-30K not being unusual, some are more / less.
IHT has to be sorted by the executor before probate / distribution of the estate funds. 

Will keep this is mind so I guess it depends on the individual bank what their minimum or specific requirements are. 

xylophone

Maybe a silly question but to ensure the valuation of my father's share of the property is accurate do I need a specific type of surveyor to value the house? 

You/the exors could pay for a valuation from a RICS surveyor but I think that unless there is a big question mark over value/likely to be IHT payable,  most people would check on current sale prices of similar houses/take an average from estimates from three Estate Agents.

noclaf

xylophone said:

Maybe a silly question but to ensure the valuation of my father's share of the property is accurate do I need a specific type of surveyor to value the house? 

You/the exors could pay for a valuation from a RICS surveyor but I think that unless there is a big question mark over value/likely to be IHT payable,  most people would check on current sale prices of similar houses/take an average from estimates from three Estate Agents.

Thanks xylophone, that's along the lines I am thinking. I don't believe IHT will be due unless my estimated value of the total estate is too low (it's not the property I am referring to here, it's the 'cash' value that is an unknown at the moment.
My father's will included a clause mentioning funeral costs to be covered by his estate. Is IHT applicable to the value of the estate before or after funeral costs are taken into account?

xylophone

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10371

noclaf

xylophone said:

https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10371

Inheritance tax could probably do with a whole new thread itself!
My father lived in a care home due to long-term illness, the house would of been his main residence if not for illness( he lived in the property during his lifetime) but as he did not live there when he passed away does this mean the 'nil-rate' element of inheritance tax on property is not applicable in this case...or is it more complicated? I assume this type of question would need a specialist to opine or at least someone who has a better understanding of IHT than me...
Edit: I will look into this further with the executors, I think there is way we can check if nil rate band relief can be applied.

xylophone

You asked about funeral costs - the page in the link above specifically refers.

With regard to the RNRB in the particular circumstances of your case, ( where your father and mother were divorced but your  late father retained a beneficial interest  (bequeathed to you) in what had been his home before being taken into care), the exors should check with HMRC.

noclaf

xylophone said:

You asked about funeral costs - the page in the link above specifically refers.

With regard to the RNRB in the particular circumstances of your case, ( where your father and mother were divorced but your  late father retained a beneficial interest  (bequeathed to you) in what had been his home before being taken into care), the exors should check with HMRC.

Thanks for all the links xylophone, had a look at the guidance and seems to be fairly clear on the funeral costs aspect. As you suggested will ask executors to check with HMRC on the RNRB treatment for our scenario, just based on reading the guidance it seems there are certain cases where HMRC will allow for the RNRB but I assume it's a case by case basis so won't assume anything for now.