Administration of a Scottish Estate

crashedandcool

I'm currently caring for my dad who has terminal cancer and I'm trying to work out how to administer his estate(I'm an executor and Beneficiary) when the time comes. I'm going to make a point of going through the Grant of Confirmation thread, but I'm stuck in a rut and have been trying to finish my research on this for weeks and need to move on. I have some questions. Thanks in advance for any help

1)HMRC - Do I need to contact them, action + Proof?

I'm expecting the estate to be under 650k using my late mothers threshold so that would be an excepted estate for inheritance tax. That said with the new C1 Form for the inventory you don't need to submit a copy of it to HMRC. However will I need any documentation/proof from HMRC to say no inheritance tax is not due before I can apply for confirmation? I tried to ask them but they will only advise you when a person is dead which was handy. I imagine I'd just phone HMRC to advise them of a death and for income tax purposes.

I mean it seems strange like you don't bother contacting them or if you do say "The estate is under 650k" and that's it no further action on my part required with regard to inheritance.

2)Wills

I've researched you will need the original will. How do you define the original will? The one held with the solictor who did the will or the one currently in my dads deed box or does it mean some Confirmation stamped will?

3)Confirmation(If I choose to do it myself)

Is Confirmation a listing of the assets of the estate or assets minus creditors/Liabilities? e.g. house worth 100k, but loan 20k so confirmation is 80k

Inventory - For the valuation do you need to attach proof of value for each item on it or proof value of each creditor/liability

Oath on the Inventory - Do I need a solictor for this or can the Sheriff Court take my oath?

I'm 1 of 2 executors. From the C1 form it looks like I mention the other executor, but in general I'd be applying for Confirmation. Is the other executor needed for signing anything for the application?

Thanks for reading.

buddy9

1)HMRC - Do I need to contact them, action + Proof?

I'm expecting the estate to be under 650k using my late mothers threshold so that would be an excepted estate for inheritance tax. That said with the new C1 Form for the inventory you don't need to submit a copy of it to HMRC. However will I need any documentation/proof from HMRC to say no inheritance tax is not due before I can apply for confirmation? I tried to ask them but they will only advise you when a person is dead which was handy. I imagine I'd just phone HMRC to advise them of a death and for income tax purposes.

I mean it seems strange like you don't bother contacting them or if you do say "The estate is under 650k" and that's it no further action on my part required with regard to inheritance.

2)Wills

I've researched you will need the original will. How do you define the original will? The one held with the solictor who did the will or the one currently in my dads deed box or does it mean some Confirmation stamped will?

3)Confirmation(If I choose to do it myself)

Is Confirmation a listing of the assets of the estate or assets minus creditors/Liabilities? e.g. house worth 100k, but loan 20k so confirmation is 80k

Inventory - For the valuation do you need to attach proof of value for each item on it or proof value of each creditor/liability

Oath on the Inventory - Do I need a solictor for this or can the Sheriff Court take my oath?

I'm 1 of 2 executors. From the C1 form it looks like I mention the other executor, but in general I'd be applying for Confirmation. Is the other executor needed for signing anything for the application?

If the value of the estate (for IHT purposes) does not exceed £650K, and TNRB is available, and no IHT is payable, then the estate is an excepted estate. Tick against YES  for boxes 21 and 22 on form C1.  The completed form is sent to the Sheriff Court. For excepted estates the executor does not contact HMRC, I believe excepted estate inventories are sent to HMRC by the sheriff clerk.

(It is worth considering how legal rights (legitim) was dealt with on the death of the first parent as this can affect the amount of TNRB available).

Solicitors usually offer to hold the original will and supply the client with a copy. So it may be that it is a copy that your father holds. If so, you would need to retrieve the will from the solicitor for a diy confirmation.

The inventory itself is a list of assets. Though liabilities are included in the calculations. HMRC Form C3 gives guidance and information on valuing (or estimating). No additional documents are attached to the C1 as proof of value. 

There  is no oath involved.

Only one executor completes and signs the C1 form. The other executor is referred to on pages 1 and 2 of C1 form but does not sign.

Be aware that there are a few pieces of information on the Grant of Confirmation thread that are inaccurate.

sheramber

It would be useful to get a notebook. Make a list of all organisations you need to notify- such as  gas, electricity, phone/internet, insurances, banks, other investments, DVLA, pensions. You can then tick them off when you notify them or have a page for each to update what you have done and who you spoke to and any follow up needed. 

When you register the death take birth/ marriage certificates etc with you for information purposes. The registrar should offer the Tell Them Once service.

crashedandcool

Thanks for the responses and I've been continuing my research as the response made be have to look into nil rate bands and the 2022 rule changes. Now I realised I am unlikely to need to transfer my mums allowance because of the residence nil rate band of 175k which automatically gets applied if the home is left to children.

So I guess in the C1 form I'd not bother ticking box 22 to transfer nil rate bands?

With legal rights I noted no confirmation was done on my mums will(were it states all goes to my dad) so no legal rights were claimed or refused. Important?

I mean the only thing I don't understand about legal rights is how if parent 1 dies, leaving everything to parent 2 why do legal rights take a third away to children, when one parent still lives and both parents saved up the value of that estate. It's like you could get a third on each death.

Few more questions

1) So you send in the original will for confirmation, but is it true you don't get it back and instead get a copy with an offical stamp?

2) Sheriff court website does not state what death ceriticate they want. The abbreviated or full one?

3) Do we get the death certificate and other documents(ID ones like bills) back and in general what document wise are you issued with when you get confirmation

4) Inventory again. My dad pays into a child saver bank account in a young relatives name. Not I think that would count as a gift for inheritance tax considerations, but would the value of this be counted as an asset

5) C3 guide hardy mentions liablities so do you list them on the inventory or just add them in as a total in a box

Now to read that 30+ page thread. Yippie

GhibliFan

I can't answer all your questions, but I got the original will returned to me with the Confirmation certificates.  I don't know if that's the same at all Sheriffs Courts (?). Mine was Greenock.

When you send the C1 you include a covering letter saying which items on the inventory you want confirmation for.  Each item gets it's own certificate of confirmation which includes on it a photocopy of it's entry on your C1.  Signed and stamped with the Court seal.  Mine was, anyway. 

I also got a bound photocopy of my C1.   The death cert. I sent was headed "Extract of an entry in a REGISTER of DEATHS" and it was also returned.

I didn't list any liabilities, just put a figure in the box.  

I don't know about your other questions. 

Keep_pedalling

crashedandcool said:

With legal rights I noted no confirmation was done on my mums will(were it states all goes to my dad) so no legal rights were claimed or refused. Important?

I mean the only thing I don't understand about legal rights is how if parent 1 dies, leaving everything to parent 2 why do legal rights take a third away to children, when one parent still lives and both parents saved up the value of that estate. It's like you could get a third on each death.

Legal rights only include movable assets so unless someone does without owning land or property then children are not going to be able to claim 1/3 of the estate. As it seems you made no legal rights claim against your mother’s estate there is nothing to deduct from her transferable NRB.

Keep_pedalling

crashedandcool said:

4) Inventory again. My dad pays into a child saver bank account in a young relatives name. Not I think that would count as a gift for inheritance tax considerations, but would the value of this be counted as an asset

No, that account would not form part of his estate. If he was paying in below £250 PA then it can be ignored for IHT purposes, it can also be ignored if it was more than that and he did not give away more than his annual exemption of £3000.

crashedandcool

Keep_pedalling said:

crashedandcool said:

4) Inventory again. My dad pays into a child saver bank account in a young relatives name. Not I think that would count as a gift for inheritance tax considerations, but would the value of this be counted as an asset

No, that account would not form part of his estate. If he was paying in below £250 PA then it can be ignored for IHT purposes, it can also be ignored if it was more than that and he did not give away more than his annual exemption of £3000.

Thanks. Does it matter he opened up the account himself for the child rather than just sending money to another account?

crashedandcool

crashedandcool said:

Keep_pedalling said:

crashedandcool said:

4) Inventory again. My dad pays into a child saver bank account in a young relatives name. Not I think that would count as a gift for inheritance tax considerations, but would the value of this be counted as an asset

No, that account would not form part of his estate. If he was paying in below £250 PA then it can be ignored for IHT purposes, it can also be ignored if it was more than that and he did not give away more than his annual exemption of £3000.

Thanks. Does it matter he opened up the account himself for the child rather than just sending money to another account?

That said far as I know he setup the account in the childs name.

Keep_pedalling

crashedandcool said:

Keep_pedalling said:

crashedandcool said:

4) Inventory again. My dad pays into a child saver bank account in a young relatives name. Not I think that would count as a gift for inheritance tax considerations, but would the value of this be counted as an asset

No, that account would not form part of his estate. If he was paying in below £250 PA then it can be ignored for IHT purposes, it can also be ignored if it was more than that and he did not give away more than his annual exemption of £3000.

Thanks. Does it matter he opened up the account himself for the child rather than just sending money to another account?

As long as the account is in the child’s name it does not matter.

buddy9

Keep_pedalling said:

Legal rights only include movable assets so unless someone does without owning land or property then children are not going to be able to claim 1/3 of the estate.

This is incorrect. While legitim entitlement only applies to moveable property (money etc.), the existence of heritable property in an estate does not disapply the entitlement to legitim.