Scotland: distribution of estate

RAS

Your case involves charities. The executors need to be absolutely sure there is no possible challenge there before looking at the residual estate.

MaskingTape

RAS .... need to be absolutely sure there is no possible challenge there before looking at the residual estate.

Understood.

It would be reasonable however for there to be a defined process &  timeline for this?

MaskingTape

Hi all - I'm back again.

We've had another update.

The solicitor states there are shares they were 'unaware of' that need to be sold.  These shares are clearly shown in the confirmation of probate, so I don't see how they could have been unaware of them.

They have also somewhat belatedly realised there is CGT to be paid.  I understand this should have been done within 60 days from the sale of the deceased's house.

To add insult to injury this person has told us they are off for holiday for the remainder of the month and nothing more will be done till they return.

I'm of a mind to write to the senior partner in the practice at this point; does anyone have advice?

RAS

Write to the senior partner. Or the partner to whom complaints are to be made, if one I'd listed on the website or the agreement you signed (there should a section on "what to do if you are unhappy with how your case is managed".

user1977

Every solicitors' firm in Scotland must have a designated complaints partner, so there should be one named in your terms of business.

MaskingTape

Thank you. 

The website doesn't list a complaints partner; so I'm thinking the managing partner would be best.

jem16

MaskingTape said:

Thank you. 

The website doesn't list a complaints partner; so I'm thinking the managing partner would be best.

It should be listed in your Terms of Business though as it is in mine. 

MaskingTape

Thanks all.

The CGT has me concerned however as I understand there are penalties if it's not paid in time. 

By my reckoning it should have been paid by end of April or thereabouts; the actual amount (based on the valuation & eventual sale price) would have been less than 4k.

If penalties / interest are applied by HMRC, who is liable? 

mybestattempt

MaskingTape said:

Thanks all.

The CGT has me concerned however as I understand there are penalties if it's not paid in time. 

By my reckoning it should have been paid by end of April or thereabouts; the actual amount (based on the valuation & eventual sale price) would have been less than 4k.

If penalties / interest are applied by HMRC, who is liable? 

The executor as personal representative of the estate would be liable for any late filing penalties charged by HMRC.

Although it is possible to appeal on the grounds that there was a "reasonable excuse" for the failure to make the return on time HMRC will rarely accept reliance on another person is a reasonable excuse:

https://www.gov.uk/hmrc-internal-manuals/compliance-handbook/ch160700

The executor could, however, seek redress from the solicitor appointed to act for them for any late filing penalties and interest charged by HMRC.

I would suggest that as part of any complaint to the solicitor the point is made that they should meet any penalties and interest charged as a result of their failure to file the CGT return on time on behalf of the executor. 

MaskingTape

Thanks all, you've been very helpful.

It has been suggested that as the total estate is of relative low value (lets say £250k), CGT does not arise.

My reading is that as the house sold for c. 30k above the probate valuation CGT is due on that capital gain.

I understand there are  allowances and fee costs that can be set against that; but I don't believe that removes the CGT obligation.

Does anyone have more information? I can't find any reference online that refers to the total value of the estate.