Refunds to Estate

Putting together the final accounts as executor of my Dad's estate (Non IHT estate) & calculating his assets on the date of his death. Since then numerous refunds have been made by such as DVLA, HMRC, DWP, Council Tax, Subscriptions etc. Given these were payments he made during his lifetime should the refunds be listed as his assets on date of death? Or should they be listed as income after death? Thanks again for all your great help.

Comments

  • Hoenir
    Hoenir Posts: 1,155
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    Yes the monies are treated as assets of the estate. 
  • sheffix2
    sheffix2 Posts: 25
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    Thanks for your reply. I guess it's just a question of where I list it in the accounts either as part of his assets on the day he died (even though the refunds arrived after that) or as income to the estate similar to interest paid on his accounts? Or doesn't it really matter where I list it?
  • Savvy_Sue
    Savvy_Sue Posts: 45,804
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    I don't think it matters where you list it. The only purpose is to demonstrate how much money there was, and that it went to all the right places ... 
    Signature removed for peace of mind
  • Hoenir
    Hoenir Posts: 1,155
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    Effectively it's an asset on the day he passed away. It's not interest. The actual date the refund was received isn't relevant. 


  • user1977
    user1977 Posts: 13,275
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    edited 13 February at 9:13PM
    Savvy_Sue said:
    I don't think it matters where you list it.
    It might not make any real difference if the amounts are relatively low, but doing it properly, these are all part of the estate (and potentially chargeable to Inheritance Tax), and are not income which has accrued to the estate post-death. They're all refunds which the deceased would potentially have been due if they had sold their car / house, cancelled their subscriptions etc on the date of death.
  • pjs493
    pjs493 Posts: 148
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    I listed my husband’s DVLA refund as an incoming transaction after death on my spreadsheet. The cheque was made out to me and was sent automatically when I used the ‘Tell Us Once Service’, but I recorded it anyway. 

    When his final salary payment came in (which included money for a substantial about of untaken leave) I also noted this as an incoming transaction, but I can see from the remittance that income tax has already been deducted. When I write to HMRC regarding the administration period of the estate, I’ll mention this payment but will note that income tax has already been deducted at source. 

    You could always call the likes of HMRC and the DVLA and ask them what their position is. That might be helpful. I’ve had cause to call HMRC a couple of times and their bereavements team are very helpful. They helped me understand my husband’s situation more clearly. They also had a lot of information I didn’t have to hand and were able to give it to me over the phone which helped when I was liaising with his accountant. 

    It might be useful to note that IHT wasn’t due on my husband’s estate and everything was left to me barring a couple of sentimental items and a charitable donation. I’m also the executor. Obviously, your situation may be more complicated than mine. 
  • sheffix2
    sheffix2 Posts: 25
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    This forum has been such a great help over the past 18 months when dealing with my late Dad's affairs.
    Thanks so much for all the useful comments & for taking the time to help others in the often baffling world of probate & estate administration. 
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