Unexpected cash inheritance

SteveG8

Although she knew she was ill, mother passed away with cancer in August 2020, leaving me as executor and sole beneficiary. It’s been a challenge for me to try and sort out her estate and will, as I no longer enjoy going into her empty house, with the memories. I’m also being pushed by the solicitor to get her paperwork in order for probate.
Before she became too ill, she had a safe with £10k’s in old £20 paper notes filling it and to take the money home to spend on myself. I know the old £20 notes need to be exchanged.  I’m 70 and aware that if I just go to the bank, there will be questions on where the money came from and don’t feel I can just tell them it was my mother’s savings. What is the best way for me to exchange/ pay in this cash and will I be taxed on it as undeclared income or similar?

Browntoa

It's now part of her estate so the solicitor will deal with the tax side of it .

The bank will ask questions but an honest answer is best , you are not the only person who's elderly family hoarded cash 

comeandgo

Paper £20’s are still legal spending money but the bank will accept it and your explanation is fine.  

MX5huggy

I presume the estate is below the Inheritance Tax threshold, because that would be due on if it wasn’t. 

Keep_pedalling

Browntoa said:

It's now part of her estate so the solicitor will deal with the tax side of it .

The bank will ask questions but an honest answer is best , you are not the only person who's elderly family hoarded cash 

The estate seems a fairly simple one, so there should be no reason to hand it over to a solicitor to deal with at considerable expense.

As for the cash I would approach a bank about setting up an executors account and getting th3 money paid into that. No need to hide where the money came from they will understand that quite a few older people hoarded cash. You will need to provide them with the death certificate, a copy of the will and proof of your ID.

If you need advice on anything to do with probate, post your questions over on the Deaths, funerals and probate board.

theoretica

SteveG8 said:

 I’m 70 and aware that if I just go to the bank, there will be questions on where the money came from and don’t feel I can just tell them it was my mother’s savings. What is the best way for me to exchange/ pay in this cash and will I be taxed on it as undeclared income or similar?

Of course you tell the bank the truth - much better than being shifty and leaving them wondering if it is something worse. I would go in without the money first to ask them about it and what paperwork you need - don't want to carry the cash around more than you need to.

If the estate is below the inheritance tax limits there would be no tax to pay - but there would be if this were your income

Albermarle

The estate seems a fairly simple one, so there should be no reason to hand it over to a solicitor to deal with at considerable expense.

From my limited experience , you have to do most of  the legwork anyway even if you have a solicitor , so as you say a waste of money. This statement from the OP seems to prove the point .

I’m also being pushed by the solicitor to get her paperwork in order for probate.

Thrugelmir

Albermarle said:

The estate seems a fairly simple one, so there should be no reason to hand it over to a solicitor to deal with at considerable expense.

From my limited experience , you have to do most of  the legwork anyway even if you have a solicitor , so as you say a waste of money. This statement from the OP seems to prove the point .

I’m also being pushed by the solicitor to get her paperwork in order for probate.

Normally the complaint is that solicitors aren't proactive nor communicative. Perhaps there's other issues. IHT is payable six months after the date of death and has to be paid before probate is granted.