Will issues arise if probate isn't applied for?

RAS

So unless the value of the estate exceeds £1m, there is no IHT to pay. And no legal obligation to sort out probate quickly. Could get messy as the beneficiarys' own executors or administrators will have to sort out the deceased parents' estate first. Presumably with absolutely minimal supporting paperwork. Not fun.

Capital Gains Tax is paid when a house in which you do not live is sold at more than the purchase price. In the absence of probate, I'm not fully sure if the estate or the individuals would be liable if there is any increase in the value since the death. But the resident beneficiary is protected from CGT because they are resident. The other beneficiary isn't necessarily protected.

One possibility however is that the resident beneficiary was given the right to reside for a period even if the property was left 50:50. That sets up an Immediate Post Death Interest trust, which means CGT wouldn't be an issue for either. But since probate hasn't been granted, not sure how you check this? But IPDI trusts do now need to be registered with HMRC, even if they commenced before the new rule came in.

Flugelhorn

CLawrenzo said:

The deceased was widowed. Both beneficiaries children.

Any ideas why  the resident wouldn't be accuring debt/fine but the non resident would? 

So long and short of it is, the two beneficiaries need to get this sorted ASAP to avoid any further issues. As I would have assumed would have been the most logical thing to do from the outset..!

the resident wouldn't be liable for CGT if it was their main residence