Understanding Inheritance Tax

BBQBossTO

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

getmore4less

Most is tedious paperwork after you grasp the basics.

Savvy_Sue

getmore4less said:

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.

BBQBossTO

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...

noh

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.

Misslayed

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). 

theoretica

If you DIY you can employ a solicitor for any particular tasks you want them for - at likely less than £13k!

Goodcitizen1

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/

DancingBadger

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.

iansarah

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