Help please - money paid after passing

Ravens221

Hi all - I am after some help please.

I am completing IHT forms for my late father. 

My mum passed away a few years ago and there was a life assurance payment for her which my father never claimed while he was alive. The company have sent a cheque to me and my brother. We are the only two children, we are the name executors and we are the only two named people on my fathers will.

Where would i pay the cheque to? My brother and I now have a joint bank account as we are living in the house together, we pay an amount into each month for household bill DDs etc. Would i pay it in here or can it still be paid into dad's bank so it's all clear in one place?

For the iht forms - it isn't HIS life assurance, it's money which should've been in HIS account before he passed. Would I just add the total of the cheque to my fathers final bank account balance and note that on the bank account form?

I am sure I will have a few more questions as I work through the rest of the schedules but that is my main one for now. 

Thanks you all for reading - this is such a hard task to do, feel sad for all of you who have been through it. 

elsien

Whose name has the cheque come in?

Ravens221

elsien said:

Whose name has the cheque come in?

Sorry I thought I had said - mine and my brothers name. The company are aware my father has passed.

born_again

As it's in your names, then into your joint account.
That's lucky you have a joint account.

Keep_pedalling

It sounds like you have not informed your father’s bank that he has died, you should do that asap. 

Your mother’s insurance payment needs to be included on the IHT return as it is part of his estate.

Are you sure you actually need to do an IHT return? What is the value of his estate?

Ravens221

Keep_pedalling said:

It sounds like you have not informed your father’s bank that he has died, you should do that asap. 

Your mother’s insurance payment needs to be included on the IHT return as it is part of his estate.

Are you sure you actually need to do an IHT return? What is the value of his estate?

I have yes - His bank has sent me a document with all the final balances on all his accounts. What made you think that may I ask.. just wondering, as i read back my post and wasn't sure what made you think that. 

I know, this is why I am on this particular forum (probate) and why I asked in my original message where on the form would I declare it. Would I add the value to my father final bank balance? But I have now seen further in the iht400 form there is a box to add monies paid after passing. 

I am sure yes - full estate exceeds 1million 

Thank you for your time. 

Ravens221

born_again said:

As it's in your names, then into your joint account.
That's lucky you have a joint account.

Thank you for clarifying. Not really, we wouldn't have one had we not lost our parents so soon. But yes, I understand what you mean. Thank you again.

Keep_pedalling

Ravens221 said:

Keep_pedalling said:

It sounds like you have not informed your father’s bank that he has died, you should do that asap. 

Your mother’s insurance payment needs to be included on the IHT return as it is part of his estate.

Are you sure you actually need to do an IHT return? What is the value of his estate?

I have yes - His bank has sent me a document with all the final balances on all his accounts. What made you think that may I ask.. just wondering, as i read back my post and wasn't sure what made you think that. 

I know, this is why I am on this particular forum (probate) and why I asked in my original message where on the form would I declare it. Would I add the value to my father final bank balance? But I have now seen further in the iht400 form there is a box to add monies paid after passing. 

I am sure yes - full estate exceeds 1million 

Thank you for your time. 

I based that on your question about paying the cheque into his account which would only be possible if you had not informed them of his death.

I also thought it worth asking about IHT because a lot of people who come on get it wrong, obviously you are not one of them.

Ravens221

Keep_pedalling said:

Ravens221 said:

Keep_pedalling said:

It sounds like you have not informed your father’s bank that he has died, you should do that asap. 

Your mother’s insurance payment needs to be included on the IHT return as it is part of his estate.

Are you sure you actually need to do an IHT return? What is the value of his estate?

I have yes - His bank has sent me a document with all the final balances on all his accounts. What made you think that may I ask.. just wondering, as i read back my post and wasn't sure what made you think that. 

I know, this is why I am on this particular forum (probate) and why I asked in my original message where on the form would I declare it. Would I add the value to my father final bank balance? But I have now seen further in the iht400 form there is a box to add monies paid after passing. 

I am sure yes - full estate exceeds 1million 

Thank you for your time. 

I based that on your question about paying the cheque into his account which would only be possible if you had not informed them of his death.

I also thought it worth asking about IHT because a lot of people who come on get it wrong, obviously you are not one of them.

Ah I see. I didn't know you couldn't pay into an account of someone who has passed away. I thought maybe in these circumstances, with relevant proof/ ID etc... and to help keep things clean and clear it would be allowed. Sorry, I assumed.

Thank you again for your help.

bobster2

Not an expert but this could perhaps go under - Interest in another estate (Schedule IHT415).

"The deceased may have had the right to a legacy or share of an estate of someone who died before them. If the deceased died before receiving the full legacy or share from that estate, include a value in this box for the assets that they still have to receive. You’ll need to fill in Schedule IHT415, ‘Interest in another estate’ to give details of this interest."

I know technically, if this policy paid out in trust it might not really be part of your mother's estate. But can't see where else to put it.

maman

bobster2 said:

Not an expert but this could perhaps go under - Interest in another estate (Schedule IHT415).

"The deceased may have had the right to a legacy or share of an estate of someone who died before them. If the deceased died before receiving the full legacy or share from that estate, include a value in this box for the assets that they still have to receive. You’ll need to fill in Schedule IHT415, ‘Interest in another estate’ to give details of this interest."

I know technically, if this policy paid out in trust it might not really be part of your mother's estate. But can't see where else to put it.

I think that might have been the case if the payout from the life insurance was still pending. Now it has been paid it forms part of the estate to be held by executors, in this case in the joint account they have.