IHT paperwork - not administrating estate

sixtyfoothigh

I posted on here back in January and received very helpful advice. My MiL died on NYE - she died intestate. We registered the death and it became apparent very quickly the estate was likely insolvent. After advice on here, we told all her creditors that no-one was administering - sent a few of them scans of what paper we'd collected showing the likely position of her estate - and they've all gone "yeah, fair enough, we're not interested in following that up". She was actually owed money from her pension and had some money in her account - but that's just sitting there as well, and wouldn't have covered her debts. Her entire estate is now sitting in a big bag of paperwork should anyone choose to administer in the future.

Sorry if this is a silly question, but do we also tell HRMC that no-one is administering in terms of filling out the IHT paperwork to show no tax to pay. I know there is a 6 month deadline for some IHT paperwork, and we're coming up to that anniversary. I just don't want to get chased for something or get a late fine. I also don't mind actually doing the paperwork if I need to, but don't want to inadvertently intermeddle at this late stage. Or is this something they won't chase?

Sixty x

naedanger

You don't tell HMRC - you have no obligation to do so since you are not administering the estate. So you cannot be fined for late payment or failing to provide information.

If you or anyone else used the "tell us once" service then HMRC should already know of your MiL's death. They probably have already concluded (from her NI and tax history) that her estate won't need to pay IHT and so they are unlikely to do anything further.

If they do write to you or anyone else you could let them know that you are not administering the estate and as far as you are aware no-one else is either. (Don't give them any figures as it might suggest you are vouching for their accuracy.)

Obviously if anyone tries to pay you anything due to your late MiL's estate (e.g. pension payments and money in accounts) then you must not accept. That would definitely be intermeddling. 

Sea_Shell

sixtyfoothigh said:

 Her entire estate is now sitting in a big bag of paperwork should anyone choose to administer in the future.

How long does the OP (or anyone in this situation) have to keep all the paperwork before it can be shredded?

Is it something like 7 years?

sixtyfoothigh

naedanger said:

Obviously if anyone tries to pay you anything due to your late MiL's estate (e.g. pension payments and money in accounts) then you must not accept. That would definitely be intermeddling. 

We used Tell Us Once when we registered the death. The state pensions people have written to my husband to say they owe the estate money and we’ve ignored that. It wouldn’t be much anyway. We informed bank she was dead so they’d freeze her account, but didn’t formally close it and send certificate. She did leave a small life insurance policy directed to my husband which wouldn’t have been part of the estate (and was spent on funeral costs).

thank you for replying, we will continue with our policy of “all paperwork in a big bag and politely telling people to go away if they contact us”. (In answer to offer question - I haven’t thought how long I’d keep stuff - probably 6 years).

Sixty x