Probate & IHT - I can do this!

Bapster76

Hello Everyone,
Sadly, my mum passed away in October and I find myself in the position many of you have been in  before.  After reading the excellent advice across this forum, I think I can probably do the IHT and probate on my own.  

I spoke to the solicitors holding a copy of my mums will, they would like £14,500+VAT to provide a full service due to the apparent complexity.  This got me thinking, do I need to spend that?  

A few details, I'm the Executor(jointly with the above solicitor, more on that later), my mums was divorced, lived alone, the property has been given a probate value by two estate agents of £600k.  There are cash assets of £30k.  These have already been transferred to me by the banks.  The beneficiaries are myself and her grandchildren. 

I figured I have the £325k plus Resident Nil Rate Band, taking me to £500k.  Therefore, I believe there is IHT to pay on £130k.  I have made a start on the IHT400 and the relevant schedules and am thinking I can do this myself!   

The solicitors who have been named as joint executors want £300 for the initial meeting and £360 to complete a Deed of Renunciation.  No idea if this is the norm but they have me by the short and curlies as I can't apply for probate without getting them to renounce.  Not sure I have any choice but to pay up.  

A couple of quick questions, if I may:

Is it recommended to get a RICS valuation for the property given the IHT?  I have two probate valuations from estate agents but I'm not sure that means anything to HMRC.  

Am I mad to do this without professional support?  The excellent advice on here has me believing I can.

Thank you to everyone contributing on this forum. 
I may have more questions as I go through the process.

p00hsticks

No you're not mad. 
With regard to the valuation, what do you intend doing with the property - retain it or sell it ? 

km1500

yes the estate sounds fairly simple and straightforward you can do it yourself

one tip - when you come to value the house don't under value it because if it sells for more than the probate value in due course then you will be liable for capital gains tax on the difference. Better to over estimate and claim back any iht paid if it sells for less

RAS

We are assuming England or Wales?

You've got enough cash to make the down payment on the IHT as far as I can see. 

I'd pay for the renunciation and DIY. 

Even if the solicitors fill in the forms, they will still expect you to go through the paperwork in the house and deliver it to them.

They'll also delay the whole process for 6 months in case an unknown sibling turns up etc. As long as you understand that should that happen, as executor, you are liable to sort it out, you'll be OK. Which means you are less likely to get into things like CT unoccupied rates etc.

Marcon

Bapster76 said:

I spoke to the solicitors holding a copy of my mums will, they would like £14,500+VAT to provide a full service due to the apparent complexity.  This got me thinking, do I need to spend that?  

Am I mad to do this without professional support?  The excellent advice on here has me believing I can.

Rather depends what the 'apparent complexity' is. Have you asked them to clarify, given that they are saying that's the basis on which they believe a full service is required?

How old are the grandchildren (ie under or over 18)?

Bapster76

p00hsticks said:

No you're not mad. 
With regard to the valuation, what do you intend doing with the property - retain it or sell it ? 

The property will be sold. 

RAS

Have you seen a copy of the will? Is there apparent complexity?

Bapster76

Marcon said:

Bapster76 said:

I spoke to the solicitors holding a copy of my mums will, they would like £14,500+VAT to provide a full service due to the apparent complexity.  This got me thinking, do I need to spend that?  

Am I mad to do this without professional support?  The excellent advice on here has me believing I can.

Rather depends what the 'apparent complexity' is. Have you asked them to clarify, given that they are saying that's the basis on which they believe a full service is required?

How old are the grandchildren (ie under or over 18)?

Two are under 18 (my children),  they are also trustee as well as myself for them. 

They refused to provide a cost for grant of service only because of the complexity.  I didn't enquire further.  I explained I had all the numbers for the assets.  

Keep_pedalling

This sounds fairly straight forward,, I would get them to renounce having them involved will just slow things down and you don’t want to be paying professions fees for the trusts you will need to create for the minor beneficiaries. 

Bapster76

RAS said:

We are assuming England or Wales?

You've got enough cash to make the down payment on the IHT as far as I can see. 

I'd pay for the renunciation and DIY. 

Even if the solicitors fill in the forms, they will still expect you to go through the paperwork in the house and deliver it to them.

They'll also delay the whole process for 6 months in case an unknown sibling turns up etc. As long as you understand that should that happen, as executor, you are liable to sort it out, you'll be OK. Which means you are less likely to get into things like CT unoccupied rates etc.

Thanks,   they mentioned the 6 months would be required as part of the full service.   I've got a copy of the will and it's me and the grandkids as beneficiaries with clear instructions on who gets what.   
Yes, it's England.

RAS

Good, you will need to set up trusts for your children, as minors can't inherit personally. Feeding a JISA might be appropriate.

My guess is that the solicitors would welcome the fees associated by running the trusts. Every time you sneeze, it'll cost money.