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Money owed to an estate informally?

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!

Comments

  • Savvy_Sue
    Savvy_Sue Posts: 46,910 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    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 mind
  • 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
  • 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.
    The car can't be SORNed as it's parked on the street, the insurer was happy to add our names to the policy FOC until they're sold... looks like I'll need to look into this a little more!

    Thanks @Keep_pedalling - I hadn't clocked that bit!
  • You can’t drive a car under a dead person’s ownership or insurance. They have to be SORNed and then retaxed. 
  • Savvy_Sue
    Savvy_Sue Posts: 46,910 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    You can’t drive a car under a dead person’s ownership or insurance. They have to be SORNed and then retaxed. 
    To be fair, @rwj hasn't said anyone is driving the car. They HAVE said it can't be SORNed because it's parked on the street. 
    Signature removed for peace of mind
  • sheramber
    sheramber Posts: 20,977 Forumite
    Tenth Anniversary 10,000 Posts I've been Money Tipped! Name Dropper
    You can’t drive a car under a dead person’s ownership or insurance. They have to be SORNed and then retaxed. 
    The policy can be changed to an executry and appoint an executor as main driver.This is what happened to my aunt’s policy when she died. Her son was able to use the car until it was sold after the funeral and the house was cleared. He lived in NZ and was here only to deal with the affairs.

    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. 
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