What, if anything, is required after death?

Olinda99

a friend of mine's mother has recently died leaving no will and very little in assets, having given away (substantial) gifts over the last few years 

I have told them there is probably some kind of inheritance tax reporting required but I'm at a loss to say who has to do what as there is no will and no executor and nobody willing to do anything 
 
there are I believe three children

does anybody have any information about who needs to do what and what happens if they don't

Cairnpapple

How large is 'substantial'?

born_again

Have a word with a local solicitor. 

Flugelhorn

I think it would help if you gave some idea of the size of the estate and the size of the gifts - also did she own her own house and was she a widow? these factors affect the IHT allowances

Brie

I keep hearing that very few average individuals ever need to pay IHT.  She would have had to have given away a LOT of £££ to fall into that category.   If there's no will and no assets then as long as there's enough to give her a send off that's fine.    If she's given away millions then the recipients might need to pay something to HMRC.

I'm wondering if a word for a friendly accountant would suffice rather than a solicitor?

Olinda99

this has been going on for a few weeks now I have been trying to find out the exact details because one of the sisters is worried. The other two children just want to leave it and not do anything.

I know the mother had a large family house in Surrey which was valued around about 1.7 million when it was sold in 2021, and also shares and savings. Her husband died 10 years ago. She has been living with her son since then.

thanks for the suggestions about them contacting a solicitor or accountant the problem is none of the children want to do anything, least if all rock the boat.

I really just want to reassure the daughter that she is not an executor and thus doesn't need to do anything until / if HMRC contact her

RAS

As a widow with assets that were worth over £1.7m two or three years ago, she will have had upto £1m in IHT allowance, depending on whether her husband's allowances were available in full.

IHT gets more complicated if the deceased gave away money within the last 7 years, and possibly if their assets were over £2m at any relevant point.

Without a will, the children are individually or severally able to apply to administer the estate. IHT needs to be paid within 6 months of death unless there is property to realise and the executors need to pay by instalments. Depending on the date of the gifts and her death IHT might be reduced from 40 to 32%.

IHT bills that are not paid on time attract an interest rate of 8%. There may also be penalties for failure to pay with 6 months or one year.

Olinda99

thanks will forward that on

you say they are severally or jointly ABLE to administer the estate but what happens if nobody wants to and nobody does anything?

Flugelhorn

Olinda99 said:

thanks will forward that on

you say they are severally or jointly ABLE to administer the estate but what happens if nobody wants to and nobody does anything?

that is a good point, normally probate is required to administer the estate ie sell property / access bank accounts / sell shares - but in the case it sounds like the major asset was sold previously and all the money given away. honestly don't know what happens here - presumably something might trigger at HMRC after the death was registered??

RAS

Then their liability for the increasing debt to HMRC increases, as do the penalties. So they could lose the lot to HMRC in time.

HMRC doesn't move quickly as those wanting to sort out the IHT liability find frustrating.  But they will wake up one day.

sheslookinhot

RAS said:

Then their liability for the increasing debt to HMRC increases, as do the penalties. So they could lose the lot to HMRC in time.

HMRC doesn't move quickly as those wanting to sort out the IHT liability find frustrating.  But they will wake up one day.

I assume by “their liability” you mean the 3 children of the deceased. 

What debt to HMRC do they have ? Why would HMRC know anything about them ?