Distribution of assets - Executor account required?

Dodge1664

I am dealing with my late father's estate. All assets go to surving spouse, and no IHT is due. However there may be a couple of bills to pay around 1-2k each:

 (1) Income tax for the period before death

 (2) repayment of local government pension

So is it necessary to keep say 5k in reserve in an Executor account? Or can everything just go to my mother, with her to pay the bills directly herself when they arrive? I have complete trust that my mother would be willing and able to pay.

any thoughts appreciated!

Keep_pedalling

If you are his executor then it is your responsibility to pay any tax, so I would keep some back for that purpose. HMRC will be writing to the executor rather than his widow. You don’t need a specific executors account just keep the money separate from any of your own. 

Dodge1664

thanks @Keep_pedalling. I just wonder if a direct transfer of assets from the estate to myself as executor might be taxed as an inheritance.

RAS

Inheritance is not taxed.

Keep_pedalling

RAS said:

Inheritance is not taxed.

I think the OP is worried that if it comes into an account in their own name it will be treated as part of their estate for the next 7 years.

No need to worry it wont be.

Dodge1664

To clarify: all assets are to be transferred to the widow of the deceased, who will also inherit the full NRB from her husband. We do not want direct transfer to other family members as this would use up the NRB. My concern was that money transferred directly to me as Executor for the purpose of administering the estate would be treated as a direct transfer.