Probate queries

incopad

I am the executor of my late Fathers estate with funds and a single property totalling under 1 million pounds (I will be claiming allowances for both my deceased parents). The beneficiaries are my bother and I. I have spoken to various probate specialists and had quotes from £595 (probate application) to £15,000 which includes everything. 

Questions: 
The all inclusive quote says that no funds would be dispersed until the house has been sold. As this was our family home we are not in a rush to sell,  although ultimately this is what we will do. If we go a more DIY can the funds from bank accounts and bonds be accessed earlier? Most fall below the individual organisations private thresholds.

We would like to keep the house utilities going until we do sell. Prior to probate how do these get paid for? 

Any help/advice much appreciated.

thegreenone

I wasn't confident enough to DIY Probate for my late Mum so her solicitors sent me a checklist.  I completed it and sent them all the documents.  I closed the bank accounts and was sent the balances and they did the paperwork.  So a half and half arrangement.

For ME.... money well spent but many others on here will tell you to DIY.  Completely your choice.

Quote "We would like to keep the house utilities going until we do sell".  You have to keep the utilities, council tax and empty property insurances going.  Council tax will give you a break period which I believe is usually six months.  These are not optional.  You will need to pay those and reclaim from the estate IF you have not had funds released.  You will also have to make sure the property is visited regularly and maintained (usually insurance requisites).   But hopefully, you can fulfill that criteria while you are emptying the property.

incopad

Thank you for your reply. I wouldn’t intend to go fully diy, more like assisted. I’m not desperate for the money and indeed, never expected an inheritance. My main issue was that if the house sells quick there would be a rush to empty it. If it did not sell for a year the other funds would be sitting in the probate specialists bank account as like I said they do not disperse funds until the house is sold.

with your 50/50 arrangements, I take it you had the funds from the bank accounts available prior to selling the house?

Keep_pedalling

This sounds like a very straightforward estate, personally I would DIY the whole thing, employing professionals almost always slows things down.

The IHT return may look daunting, but it is not really that complicated and if you get stuck you can get plenty of free help on here

incopad

Thank you. Are there any books/guides you would recommend?

kipperman

incopad said:

Thank you. Are there any books/guides you would recommend?

Having been through this recently  it's not difficult and I found the IHT forms themselves reasonably helpful, along with the guide that you can download.

My motivation was primarily to avoid the "middle man" of a solicitor. Delays in this process are inevitable, but at least you can keep control and chase up as necessary, rather than relying on someone else.

Terminology can be a little awkward, but as keep_pedalling says this forum is fantastic - search for "IHT" or even "IHT400" and you can be sure that someone will have asked the same question. If not, post. Every response I have had has been useful and definitely not patronising.

Keep_pedalling

incopad said:

Thank you. Are there any books/guides you would recommend?

No books or guides, but I would recommend having a look through the IHT400 form and the notes as a starting point. The supplementary sheets you will definitely need are IHT402 (transfer of NRB), 435 (RNRB), 436 (transfer of RNRB), 406 bank accounts), 405 (property), 407 (household goods) and 401 (stocks and shares). 

It’s a lot to go through but none are that difficult and you can take your time.

https://www.gov.uk/government/publications/inheritance-tax-inheritance-tax-account-iht400

poseidon1

incopad said:

Thank you. Are there any books/guides you would recommend?

You may find the checklist below helpful in identifying the different stages in the estate administration/probate process and to what degree you feel comfortable in taking on all or some of the tasks.  

https://simply.law/england-wales/guides/probate-solicitors/checklist-for-executors/

Certainly £15k to do all the administration of estate where no IHT is due seems excessive. Therefore you need to decide if paying  £595 to obtain the grant of probate but with you collating the necessary  figures for the application, is a worthwhile expense.  

incopad

Thank you for this it is most reassuring. I was not tempted by the 15k offer as like you said the estate seems quite straight forward. Could I  ask some further questions? When you notify the banks do they give you a copy of statements? The reason I ask is there is a discrepancy in the balance my dad  had put in his spreadsheet compared to what the current balance is. Also when filing ithe tax forms do you use the balance at the date of death?

Keep_pedalling

incopad said:

Thank you for this it is most reassuring. I was not tempted by the 15k offer as like you said the estate seems quite straight forward. Could I  ask some further questions? When you notify the banks do they give you a copy of statements? The reason I ask is there is a discrepancy in the balance my dad  had put in his spreadsheet compared to what the current balance is. Also when filing ithe tax forms do you use the balance at the date of death?

The bank will supply statements if you need them but I think you need to ask. Yes it is the value at the date of death you declare.