ISA and HIT

Lilio8

Good evening.

I'm going over the HIT400 etc., the calculations sent by my solicitors and noticed that the share ISA has not been included, only the Fund & Share (with some other shares).

I read here https://www.gov.uk/individual-savings-accounts/if-you-die

that 'There will be no Income Tax or Capital Gains Tax to pay up to that date, but ISA investments will form part of your estate for Inheritance Tax purposes.'

Shouldn't the share ISA be included in the calculations since it forms part of the estate?

I'm happy to pay less tax; not happy to be chased by HMRC with penalties if the ISA needs to be included.

Keep_pedalling

Yes, the ISA is part of the estate for IHT purposes so it should be included. 

Lilio8

Keep_pedalling said:

Yes, the ISA is part of the estate for IHT purposes so it should be included. 

I'm told that for Probate purposes is not. I'm baffled! Something isn't right or I'm missing something.

tls123

Again you state you’ve been told that for probate it’s not who is advising you? Are you sure they are qualified. If it’s the coop legal services they use unqualified call centre agents for probate. That’s the confusion you dont know who to trust because you seem to be getting the wrong advice from them all the time on all your numerous threads. So many sad stories from families saying the same thing again and again. 

Keep_pedalling

Lilio8 said:

Keep_pedalling said:

Yes, the ISA is part of the estate for IHT purposes so it should be included. 

I'm told that for Probate purposes is not. I'm baffled! Something isn't right or I'm missing something.

I suspect what you have been told is that you don’t need probate to release these funds, which is quite common as banks and building societies will release funds up to quite high levels (for example with Barclays, Lloyds or NW it is £50k). That does not mean you don’t declare it on the probate application if it is needed for other assets.  

Lilio8

tls123 said:

Again you state you’ve been told that for probate it’s not who is advising you? Are you sure they are qualified. If it’s the coop legal services they use unqualified call centre agents for probate. That’s the confusion you dont know who to trust because you seem to be getting the wrong advice from them all the time on all your numerous threads. So many sad stories from families saying the same thing again and again. 

I understand what you are saying. But there is only 1 month and a week left or so to pay HIT. Leaving the Co-op L.S. now would put in in a very dangerous zone. I'm not sure that another probate solicitors firm would accept to take on my case, not at a high cost. Surely the Co-Op L.S. will charge me for the work done thus far, if not the whole cost. 

tls123

So don’t leave them it sounds like they are asking you to still do the majority of the work like checking them IHT form which you found errors in then they will no doubt charge you an awfully big bill running to thousands if it was me I would be putting in a complaint with them for incorrect IHT paperwork since you say they are solicitors 

Lilio8

tls123 said:

So don’t leave them it sounds like they are asking you to still do the majority of the work like checking them IHT form which you found errors in then they will no doubt charge you an awfully big bill running to thousands if it was me I would be putting in a complaint with them for incorrect IHT paperwork since you say they are solicitors 

Thank you for your replay.

I emailed the Team Leader who is a solicitor and he's now in talk with his superior solicitor. He finally agreed what I had been saying all the time!

I'll ask another solicitor if he/she will take me on but it might be late. It might be just me being pessimistic. I feel exhausted to say the least.

I will most definitely put in a complaint because it shouldn't have been like this.