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Money owed to an estate informally?

rwj
Posts: 5 Forumite


I'm working through the estate valuation for my late father and can't find a clear answer on how I should treat money owed back to his estate, that wasn't actual loans etc. The IHT416 form seems a bit long winded and some of these are sums that wouldn't have been owed to Dad if he was still alive, so don't seem to fit what is asked for in the form? For example:
- his partner (not married) had put through a travel insurance claim for a holiday they couldn't take a few months prior to his death. She paid for the trip originally and he had transferred the money to her. She's now got the refund from the travel insurance, some of which she is going to pay back to Dad. We have also put in another travel insurance claim for a holiday that was due to take place after his death. We're talking a few thousand pounds here in total.
- Some of the policies / subscriptions he held and were paid upfront (e.g. a magazine subscription, dental plan) have provided refunds for unused portions, however other policies (e.g. car and house insurance) were also paid up front but we've kept them running as obviously the car and house need to remain insured. The figures range from £30 to £100.
Can anyone shed light on this? For context, we're likely to be around the inheritance tax threshold so although the figures aren't huge, they could make a difference to where the final valuation sits and want to make sure I've done it properly!
- his partner (not married) had put through a travel insurance claim for a holiday they couldn't take a few months prior to his death. She paid for the trip originally and he had transferred the money to her. She's now got the refund from the travel insurance, some of which she is going to pay back to Dad. We have also put in another travel insurance claim for a holiday that was due to take place after his death. We're talking a few thousand pounds here in total.
- Some of the policies / subscriptions he held and were paid upfront (e.g. a magazine subscription, dental plan) have provided refunds for unused portions, however other policies (e.g. car and house insurance) were also paid up front but we've kept them running as obviously the car and house need to remain insured. The figures range from £30 to £100.
Can anyone shed light on this? For context, we're likely to be around the inheritance tax threshold so although the figures aren't huge, they could make a difference to where the final valuation sits and want to make sure I've done it properly!
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Comments
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You say these sums wouldn't have been due to Dad if he was still alive, but I'd argue that most of them would: the house insurance could be validly charged to the estate, but if the car is still being used then the insurance should be paid by the new insured. If it's SORNed then estate pays.Signature removed for peace of mind2
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Refunds are not classed as debts and should be declared as other assets in box 76 of IHT400.
https://www.gov.uk/hmrc-internal-manuals/inheritance-tax-manual/ihtm10151
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Savvy_Sue said:You say these sums wouldn't have been due to Dad if he was still alive, but I'd argue that most of them would: the house insurance could be validly charged to the estate, but if the car is still being used then the insurance should be paid by the new insured. If it's SORNed then estate pays.
Thanks @Keep_pedalling - I hadn't clocked that bit!1 -
You can’t drive a car under a dead person’s ownership or insurance. They have to be SORNed and then retaxed.0
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Midlander59 said:You can’t drive a car under a dead person’s ownership or insurance. They have to be SORNed and then retaxed.Signature removed for peace of mind0
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Midlander59 said:You can’t drive a car under a dead person’s ownership or insurance. They have to be SORNed and then retaxed.
My husband’s policy continued for 11 months as an executry with myself as main driver until the end of the policy year.Then I had to take out my own insurance.0
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