Council Tax Class F cancelled before probate, long after "Executors' Year" [Merged]

DontLikeCouncils

My mother died some years ago. I am her only child, and sole executor of her will, which I have actually lost. I am the residuary beneficiary of her estate. Most of the value is in her house, in England, which remains unoccupied. This was not specifically bequeathed to me. I live elsewhere in England.

I started dealing with her affairs promptly, but soon had to stop because I became very ill, mentally and physically.  

I told the local council that I was the sole executor and was currently too ill to apply for probate. They notified me that it was Class F, Property left empty as the Council Tax payer is deceased, zero CT to pay. They didn't object, and just asked for an update every year.

At the time, several reliable people told me there was no legal time limit to apply for probate, and I should wait until I was well enough to do it correctly. Even if a solicitor acts, I still need to find all the paperwork and value the assets. That's been impossible so far.

I understood from reliable sources that neither the house nor anything else in the estate could be mine before probate. 

The council never even hinted at a problem or a time limit until this year. They suddenly announced that they had recently audited the property address, I have failed in my duty as executor, and in accordance with the common law "executors' year" they will now treat the dwelling as being in my sole name. They say as residuary beneficiary I have a freehold interest in the dwelling as set out by Section 6 of the Local Government Finance Act 1992.

They are demanding six years' back tax, a five figure sum, for 2017-2023 and CT for 2023-24.

Can they do any of this? I have not misled them or deliberately delayed probate. Why would I? 

Have they been negligent in only "auditing" the property after some years? Can they legally demand CT for past years when they have only recently arbitrarily decided to stretch the effect of the "executors' year"?

If the house is regarded as being in my sole name, does that mean I could, theoretically, sell it now without probate?

I don't understand the legal justification for the demand and I wonder whether a relevant case has ever been decided in court.

I will need professional help. A relative recommends a solicitor friend in another part of England. Should I instead find one near the house, who knows the workings of the local council and magistrates' court?

Please advise how I stand and what to do. If the council doesn't like the outcome, is there anything else it can do to get at me? The house is not in a holiday/second home area.

Thank you.

Misslayed

Move to more appropriate board requested. 

MSE_ForumTeam5

Moved as suggested

Keep_pedalling

I am afraid the council have taking the view that you have indeed failed in your duty as executor to expedite your mother’s will. Although there is no time limit on applying for probate that does not mean that there are no consequences in not doing so, for instance IHT is due on larger estates within 6 months of death. The class F exemption is provided up to 6 months after grant of probate but in cases where this delayed because the executor has for whatever reason failed to apply for probate the exemption can be withdrawn.

You really should have handed the process over to a solicitor if you were incapable to apply for probate yourself, and I think this is now your only option.

Sarahspangles

I do think you were ill-advised by the reliable people/sources you refer to.  It was in your interest then to resolve this promptly, and it could have been delegated.  Maybe your solicitor will be able to get the Council to write off the debt due to your incapacity, but the priority is to get probate and settle the estate.  Then if the charges aren’t written off you’ve got a pot from which to clear this debt.

You might only have one face to face meeting with a solicitor, if any, so I’d choose a solicitor local to the property.  Not so much because they know the local Council or Courts, because that counts for very little.  But if you need to an informal recommendation about estate agents or house clearance they may be able to give one.

poppystar

If they are only demanding the actual CT then I would find a way to pay up now. Around here after the first year, CT is charged at double the normal rate on unoccupied property. Regardless of whose name the property is in, as executor and beneficiary you on behalf of the estate are liable. It’s sad that you were told this was not a problem by those ‘reliable’ sources. You do need to find a way to get Probate now and to sell the house before more problems arise.  

Sadone

You sound exactly like me sadly. I've let matters drag on for various reasons, cancer, mental breakdown, ect, thats gone on for years. After reading about your experience I'm now terrified of what bill I'm going to receive when I do seek probate.

msb1234

I’d also advise taking on a probate solicitor who will do the donkey work for you. Then you will be able to sell the house, pay off the debt and move on.
There is a silver lining to this, it has been several years since you sadly lost your mum so the house may well have increased significantly in value over that period of time. Enough to cover the costs of the CT.

silvercar

msb1234 said:

I’d also advise taking on a probate solicitor who will do the donkey work for you. Then you will be able to sell the house, pay off the debt and move on.
There is a silver lining to this, it has been several years since you sadly lost your mum so the house may well have increased significantly in value over that period of time. Enough to cover the costs of the CT.

In which case there could be a CGT bill based on the difference in the value of the property at the date of the mother's death and the date of sale.

DontLikeCouncils

I am the residuary beneficiary of an estate consisting mainly of an unoccupied house. The death was some years ago. Probate has not been obtained due to ill health (I am sole executor).

The council notified me that it was Class F, Property left empty as the Council Tax payer is deceased. They didn't suggest that there was any problem or time limit. This year they billed me for six past years' Council Tax. The circumstances have not changed. This seems to be due to a change in the council's policy or law interpretation.

Can they really charge me arrears when the circumstances and the correct information I gave them are still the same? How do I fight this?

Selling the house would take a very long time for health and other reasons, and would not solve this problem.

RAS

It would be better to continue your previous thread.