Understanding Inheritance Tax

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  • BBQBossTOBBQBossTO Forumite
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    Hi,

    Thank you all for the above replies.

    So it looks like although we have a will, there's no applicable executor as the original solicitor had gone into liquidation, the  solicitors that simply had the will in storage have said we can either appoint them as executors (potentially costing £13,000 for the entire probate / IHT process) or I could apply for letters of administration to be the administrator of the will and go the DIY route.  I'm definitely considering going DIY route as £13,000 is a sizeable amount of money.  I don't believe my Mum's estate is particularly complicated (one residence, we already had lasting power of attorney so there's no hidden financial info.  What are people's experiences of going DIY for Probate / Letters of Administration / Inheritance tax? Have you found it a simple enough process to carry out?

    Thank you
  • getmore4lessgetmore4less Forumite
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    Most is tedious paperwork after you grasp the basics.


  • Savvy_SueSavvy_Sue Forumite
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    Most is tedious paperwork after you grasp the basics.


    And you'll still have to deal with lots of tedious paperwork even if you use a solicitor.
    Signature removed for peace of mind
  • BBQBossTOBBQBossTO Forumite
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    SeniorSam said:
    If your Father dies and left his estate to your Mother, then his inheritance tax and residential allowance can still be claimed. Therefore £1,000,000 in total before tax.  Is this the way the estate moved?

    If not, can you explain how your Mother's assets were obtained. The more information you give, the easier it is to try and help.

    Hi,  My Dad passed away in March 2007 so I don't believe there was any residential allowance in affect then...
  • nohnoh Forumite
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    BBQBossTO said:
    SeniorSam said:
    If your Father dies and left his estate to your Mother, then his inheritance tax and residential allowance can still be claimed. Therefore £1,000,000 in total before tax.  Is this the way the estate moved?

    If not, can you explain how your Mother's assets were obtained. The more information you give, the easier it is to try and help.

    Hi,  My Dad passed away in March 2007 so I don't believe there was any residential allowance in affect then...
    Therefore as it didn't exist then it hasn't been used and is available for transfer to your mothers estate.
    See my comment in your other thread.
  • MisslayedMisslayed Forumite, Senior Ambassador
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    Another vote for DIY. It is tedious (took my sister and I two days for my mother's uncomplicated estate), but fairly straightforward, and you would have to supply most of the information to the solicitor so that they can write it in the box. We found the helpline very user friendly (although it was 13 years ago). 
    I’m a Senior Forum Ambassador and I support the Forum Team on the Competition Time, Site Feedback and Marriage, Relationships and Families boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected] All views are my own and not the official line of Money Saving Expert. [email protected],
  • theoreticatheoretica Forumite
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    If you DIY you can employ a solicitor for any particular tasks you want them for - at likely less than £13k!
    But a banker, engaged at enormous expense,
    Had the whole of their cash in his care.
    Lewis Carroll
  • Goodcitizen1Goodcitizen1 Forumite
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    Which Legal offer a service to help with queries on the forms etc for £29 joining fee and £9 a month. I haven't used them yet, but may resort to them if I get stuck. A local solicitor quoted £1800 + VAT for the IHT400 and associated schedules, so I would shop around.

    https://legalservice.which.co.uk/wills-probate/probate/
  • edited 25 January at 12:43PM
    DancingBadgerDancingBadger Forumite
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    edited 25 January at 12:43PM
    Yet another vote for the DIY route - as long as the estate is reasonably uncomplicated (all assets in the UK, no offshore accounts, etc) and the will clearly sets out the deceased's wishes.  You do need to be well-organised and prepared to read, and fully understand, the guidance notes...and if you get stuck, the cumulative knowledge of the posters here is usually readily available and kindly given.
  • iansarahiansarah Forumite
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    Hello all and I hope you can advise.
    My Mother died recently. She left her home to me and my two brothers to be split three ways. She has the 325k basic tax threshold but can we claim the 175k Resident Nil Rate band as well if we intend to sell the house as soon as possible.
    My Father died in 2009, left everything to my Mother but the solicitor put the estate into a Discretionary Trust. I believe that this trust has been dismantled (?) Can we now claim his unused Nil Rate Band?
    Thanks for your help
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