Who inherits?

MrsDocka

Hi all,
I need some advice please as I'm completely clueless. 
My dad was taking care of my grandma until he passed in 2015. Then my uncle moved in & took care of her until she passed in August 21. It wasn't until my uncle's recent passing that grandma's will has been discovered, in which she leaves everything to my dad & not her other children. That in itself I do not understand!

My questions are where do we stand with the will, what happens now & are we allowed to distribute her estate fairly? If anyone could advise us on next steps please, I would very much appreciate it. I have never had to deal with this before. Thanks in advance.

SiliconChip

It took a bit of finding, but it appears in this situation that it will be treated as if your grandma had died intestate, so the normal rules of intestacy should be followed - which will hopefully allow for an equitable distribution of the estate to surviving family.

See here https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm12084 

"Lapse occurs when a gift made in a Will fails because of the death of the legatee or devisee in the testator’s (IHTM12001) lifetime. Where the legacy or devise is anything other than residue, that property will normally fall into residue.

If a gift of residue lapses, the property devolves as it would on intestacy (IHTM12101)."

theoretica

SiliconChip said:

It took a bit of finding, but it appears in this situation that it will be treated as if your grandma had died intestate, so the normal rules of intestacy should be followed - which will hopefully allow for an equitable distribution of the estate to surviving family.

See here https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm12084 

"Lapse occurs when a gift made in a Will fails because of the death of the legatee or devisee in the testator’s (IHTM12001) lifetime. Where the legacy or devise is anything other than residue, that property will normally fall into residue.

If a gift of residue lapses, the property devolves as it would on intestacy (IHTM12101)."

The exception to this is where a gift in a will is to someone's children, in which case their share passes down the line of descent to their children.  So the OP and siblings would inherit their father's share.

However, if they are all adults and not in receipt of benefits they can look into a deed of variation and give some of the estate to other relatives.

MrsDocka

Thank you both, that is a massive help. I read earlier about deed of variation, it has a 2 year time limit. We will be having a family meeting this week so I can relay this info back to everyone.

Keep_pedalling

We’re there no clauses in the will that covered your father pre- deceasing her? If not then the above post covers it. 

A deed of variation must be done within 2 years of death so there is plenty of time to correct this. 

MrsDocka

Not that I know of, I have yet to see the will myself. 

Sea_Shell

Is the time limit for a DoV only to satisfy the IHT rules ?

If outside of 2 years, would HMRC treat the whole amount as being inherited by the original beneficiary, in respect of THEIR estate's IHT position?  And the amount "given away" defaults to being a standard gift?

elsien

Was the will written by a solicitor? Might be worth checking with them to see if there was a more recent one, unless she was too unwell to have rewritten it after your dad’s death?
What’s been happening with the estate in the last 12 months - if you weren’t aware of the will, what steps were being taken to administer the estate? 

Keep_pedalling

Sea_Shell said:

Is the time limit for a DoV only to satisfy the IHT rules ?

If outside of 2 years, would HMRC treat the whole amount as being inherited by the original beneficiary, in respect of THEIR estate's IHT position?  And the amount "given away" defaults to being a standard gift?

Yes, if the beneficiaries net worth is not taken close to IHT territory it won’t make any difference if they make a DoV or simply gift part of their inheritance. 

MrsDocka

Elsien, when my dad went into hospital, August 2015, my grandma had a stroke days later so I don't believe that she would have been allowed to make a new will from that point. Sadly, she found it difficult to communicate & slowly deteriorated. Not long after she passed, my uncle was diagnosed with cancer so he didn't sort through her belongings. 

74jax

MrsDocka said:

Hi all,
I need some advice please as I'm completely clueless. 
My dad was taking care of my grandma until he passed in 2015. Then my uncle moved in & took care of her until she passed in August 21.
Who administered (or has started to administer) grandma's estate?

 It wasn't until my uncle's recent passing that grandma's will has been discovered, in which she leaves everything to my dad & not her other children. That in itself I do not understand!
Do you mean you don't understand why, or the wording? If it is the wording, then in basic terms, everything she owned she wanted your dad to have. Usually there's wording after this about what would happen if he predeceased her.  Do you know the solicitor who drew up the will? 


My questions are where do we stand with the will, what happens now & are we allowed to distribute her estate fairly? 
Fairly to who? The person who wrote the will, should have their wishes carried out. It doesn't matter what other people think.  It is the last wishes of someone and you may not understand the reasons but they were your grandmother's. 
If anyone could advise us on next steps please, I would very much appreciate it. I have never had to deal with this before. Thanks in advance.

I'd first be looking at who administered your grandmas estate. Could uncle have found the will, not liked its contents, and conveniently ignored his mother's wishes?

A copy of the will is needed for the wording about what was to happen if your dad predeceased her.