Mother just died, I have no money of my own, what to do

AlAlbert

TBagpuss said:

You can normally also ask a bank to pay the funeral directors directly from her accounts, although that may not be what you want to do here. 

That is what I'd expect to do: Just send them a bank transfer or a debit card payment from my mother's account.

TBagpuss said:

If you have no income of your own then you may be able to claim benefits to cover your immediate outgoings until probate is granted.

It's not unreasonable to look for a job, too. 

In terms of the house, as soon as you get probate, put it on the market - in the mean time, talk to some local agents for marketing advice - what they realistically think it will sell for in its current condition, and whether there is anything you can do that would be affordable or which you can do yourself to make it more marketable. 

Thanks for the excellent suggestions.

AlAlbert

Sea_Shell said:

If you don't HAVE to sell the house to pay IHT, is it your intention to keep it, or to still sell up and move to something more suitable, whilst releasing some equity?

I'd love to keep the house as it has been in the family for such a long time and I have great emotional attachment to it but, even if there is no IHT to pay, I don't think I could afford to keep it going. I don't know how much I'll have left at the end of all this and so I don't know if I'll be in a position to rent or buy. I suspect it'll be rent.

AlAlbert

Blindalley said:

Great stuff from people above. My heart goes out to you. A carerer who probably gave and gave ( saving the state and us money ) . Wish you well, with the good advice here . Take care

Thank you, that's very kind. I have had very good advice here. Things are looking up a bit, I feel.

RetSol

I'd love to keep the house as it has been in the family for such a long time and I have great emotional attachment to it but, even if there is no IHT to pay, I don't think I could afford to keep it going. I don't know how much I'll have left at the end of all this and so I don't know if I'll be in a position to rent or buy. I suspect it'll be rent.

Condolences, @AlAlbert.  I am glad that you have come here to seek advice.

On the basis of what you have told us and the advice so far, I think that you will be fine financially - even able to buy somewhere in London, if you are realistic about location and size. 

You have a potential short-term cash flow  problem but that need not be insurmountable.  

There is plenty of information available on the Internet about claiming benefits, eg https://www.moneysavingexpert.com/family/benefits-check/. 

AlAlbert

Keep_pedalling said:

Probate is often not required when the first spouse dies, this does not effect your ability to claim his NRB, you will also be able to claim his residence NRB, so it is highly unlikely that IHT will be due on the estate. You will have to use IHT 400 and associated forms rather than IHT 205 which might seem a bit daunting but it is really not that difficult and you will get plenty of help from the regulars on here.

Are you planning to sell the house? I think you would be wise to, otherwise you will find yourself asset rich and cash poor having to manage a money pit of a house. 

Thanks for the confirmation.
Yes, most likely I will need to sell the house. My mother was, as you say, asset rich and cash poor and I will be too.
I had previously mooted the idea of converting it to an HMO but (even with a business mortgage) I think I'd lack the capital to pay for the refurbishment whilst also paying for somewhere else for me to live.

NewLeaf1986

I'd certainly echo what others have said above and pay serious thought to buying elsewhere and starting a new.

I'd certainly dispose of the consideration of renting long term, you have an excellent sum of capital coming up that will do you and your chosen inheritees wonderfully. Don't line a stranger's pockets with it in the form of rent payments. 

Travel a bit, find your new you. The UK is small enough to easily venture out and discover a new county every week but big enough to have very diverse property values and equally diverse lifestyles available to you. 

Maybe you get a cottage or converted barn in the country and surround yourself with little baa lambs, while collecting fallen apples from your orchard to make some lovely cyder and pies. 

AlAlbert

Mojisola said:

It will all be overwhelming at the moment but, when things settle down, give some thought as to whether you want/need to stay in London.

Unless you have a good collection of friends and family in the area, it could be worth making a fresh start in a cheaper part of the country where you could buy outright.

Where to live is a good question. I don't think I could live outside of London (well, at least not very far outside). I've previously lived in south Wales and I liked it there very great deal (and it's certainly vastly more affordable than anywhere in London!) but I don't think it could really replace London for me. Also, I used to work in Epsom in Surrey, which I liked, and I don't think I'd want to go much further out from London than that. I doubt I could afford Epsom nowadays though!

The prices of London and the surrounding areas are astronomical compared to areas like south Wales but there are massive opportunities in the London area. I used to be self employed and I could do that here in London without a car whilst still taking advantage of the massive population density in London. High population density equals high density of potential customers (although it also means greater competition). Even in Epsom the train would get me into Waterloo in half an hour so so.

If I was to move to a (much) cheaper area like south Wales, the cost of living and housing would go down but the population density is much lower and I'd realistically need a car, and thus greater expense, to get around and generate an income.

So it's (probably) London for me for now.

thegreenone

I am so sorry for your loss.  My mother passed away in November and everything feels daunting on top of grief.  It is all doable and I'm nearly out the other side but with the help of solicitors - although this is not necessary.
When you receive the death certificate take it and the WILL IN to your local bank branch with details of the bank accounts.  The bank said they would release funds for the funeral but I had that already covered.  The bank were quite happy on sight of the Will and ID that my husband and I were the Executors; asked for our bank details and within a week I had all Mum's money, which I put into a separate account.  It was substantially more than your Mum's pots so there shouldn't be any problem in you having the money.  Do keep clear records of where it goes, though.  (The shares account wanted Probate).

Please don't pay for a valuation.  I only needed one valuation for probate, although some say get three.  The EA advised me to do absolutely nothing to Mum's (in need of total renovation) flat, apart from clear it and he was right.  Four viewings and two asking price offers within 24 hours of it being on the market.  I am sorry you are losing your home but think that, hopefully, it will belong to a family who will love and cherish it as much as your family did.
I wish you all the best.

AlAlbert

NewLeaf1986 said:

I'd certainly echo what others have said above and pay serious thought to buying elsewhere and starting a new.

I'd certainly dispose of the consideration of renting long term, you have an excellent sum of capital coming up that will do you and your chosen inheritees wonderfully. Don't line a stranger's pockets with it in the form of rent payments. 

Travel a bit, find your new you. The UK is small enough to easily venture out and discover a new county every week but big enough to have very diverse property values and equally diverse lifestyles available to you. 

Maybe you get a cottage or converted barn in the country and surround yourself with little baa lambs, while collecting fallen apples from your orchard to make some lovely cyder and pies. 

Whilst I'd certainly prefer to buy rather than rent, location is everything as they say. It has to be right.

As I mentioned above, I've previously done the small town lifestyle in south Wales where I lived literally on the edge of town and was able to walk up into the forest at a moment's notice. I greatly miss that ability. BUT... if I have a free choice between that and London, I know I'd have to choose London -- for now. The opportunities are just so much greater in London.

The country cottage thing certainly appeals to me but it's a fantasy for if and when I am wealthy. I don't underestimate the value of what I'll hopefully have when all this is over (and I know I'll be better off than many) but, by modern UK standards, it still won't be a fortune.

thegreenone

AlAbert, it depends what you want as your next home.  Funnily enough my late Mum's flat was in Epsom.  It was a very large 3 bed flat in leafy communal gardens and although in need of renovation it went for £375k.  Next door, completely renovated sold for £400k so with your inheritance I think you could afford to buy and have plenty left over for living life without financial worries.