IHT Probate and excepted estates

jem16

otb666 said:

Thank you so with the boiler service and house insurance and wake costs (not funeral) you paid for them and then will recoup after probate as I believe the extor account will not allow money out until probate granted. The other extor has no money so as our budget is quite tight will need to know what we have to pay for upfront and quote on homeprotect was 27pm also guessing there will be one week AA money to pay back as well as state and works one week pensions to pay back Will they wait for Probate to be granted as guessing once bank account frozen will not be able to claim back there.

I’m in the same position with the other executor, my brother, living 300 miles away so it’s basically me who’s dealing with it. One of Dad’s accounts had less than £50k in it so was released to me right away as executor. I have kept it in a separate account, not an executor account as few and far between and seem to be problematic anyway with not allowing funds to be released till after probate. My brother trusts me to deal with it and didn’t ask for it to be a joint account but it could have been. I’ve used that for all the day to day expenses and am keeping a spreadsheet of all incoming and outgoing expenses. Confirmation, probate here in Scotland, took 15 weeks due to delays at the Sheriff Court so wouldn’t have helped if I couldn’t access some money. I’ve used that for wake, tax bill and overpaid state pension. 

mybestattempt

I wouldn't be certain about the Tell us Once service informing about the "government pension" already in payment.

If it is a civil service pension then you need to inform directly:

https://www.civilservicepensionscheme.org.uk/your-pension/personal-life/tell-us-someone-has-died/#tellus

Runner_Duck

Mum's with house was insured SAGA and they continued to ensure after her death. I think there was a proviso that we had to visit weekly, but that was not a problem as I began clearing out cupboards etc, Lots of banks will pay 'reasonable' funeral expenses from the deceased's account direct to the funeral directors. Civil Service pension were really slow, took 6 months for them to pay the £130 she was owed.

otb666

Thank you for all your replies,each and everyone, it means a lot, and feeling very more confident we can handle calls to
works pension
banks
water
gas
electric
sky
home and heating insurance
tv license
telephn and broadband
bt shares
After using tell us once.
I am hoping that we will only have to pay back one week state and private pension £500 wake £900,and a couple of skips £400 Probate £375.=£2175
I know wake expensive but its what he wanted.
The 2 funeral plans will want extor bank details which we have not got yet so will have to wait til we have set this up. Other extor insistent on joint extor account and willing to travel if needs be.
As I think its just banks and funeral plans who will want to see wills will have to do all the above first,then get 3 estate agents value of house before probate application.

otb666

I have checked bank statements and there are approx 15 members of family which received xmas and birthday cash under 250 per person. When both grandparents alive during the pass  7 years can I double the limit £3000 when there were 2 grandparents or do I half the value now of the gift or is it just £3000?

Also along with all the smaller gifts one year a £6000 gift (both alive) then another year £3000(both alive) and another year two £3000 gifts as well as the normal smaller gifts and final xmas head of both familes were given over 3000 to divy out.

I would like to understand how I will be asked this on Probate application Will they just ask for a total over last 7 years eg 6+3+6=16k or if i include last xmas 16k+6k=22k

To summerise do I make any adjustment to gifts made jointly and when declaring gifts over 3000 as the smaller gifts were £250 each or less Do they count towards 3000.



Hoping someone can make me understand

Thank you

Keep_pedalling

otb666 said:

I have checked bank statements and there are approx 15 members of family which received xmas and birthday cash under 250 per person. When both grandparents alive during the pass  7 years can I double the limit £3000 when there were 2 grandparents or do I half the value now of the gift or is it just £3000? 

You can ignore these smaller gifts. Each of them will have had an annual exemption so you halve the amounts given as joint gifts. If that half is below £3k then again ignore it.

Also along with all the smaller gifts one year a £6000 gift (both alive) then another year £3000(both alive) and another year two £3000 gifts as well as the normal smaller gifts and final xmas head of both familes were given over 3000 to divy out.

I would like to understand how I will be asked this on Probate application Will they just ask for a total over last 7 years eg 6+3+6=16k or if i include last xmas 16k+6k=22k

To summerise do I make any adjustment to gifts made jointly and when declaring gifts over 3000 as the smaller gifts were £250 each or less Do they count towards 3000.



Hoping someone can make me understand

Thank you

You don’t declare each gift on the probate application, but if you are doing an I HT return you need to declare them there.

otb666

@Keep_pedalling Thank you. We are not doing an IHT as excepted estate.

So the 6000 gift is  3000 each so just declare £2(plus that persons  50 birthday and 50 xmas ) as its on £3000 and not below (I can ignore £50 x 30 gifts for other relatives as well that year apart from the person that recieved 6000)

I can ignore the 3000 which both gave as 1500 each(again the smaller gifts I can ignore as 50 each relative)

And the two 3000 gifts to 2 people one is £3001 over exemption plus their birthday and xmas for that person  as only one parent alive then 

Also the lump sum at xmas for forthcoming birthdays where this was £500 per person (250 xmas +250 birthday)  but given as one lump sum to be divided up by head of family. I can ignore them. as both appear  over £3000 

Assuming it asks for total gifts on probate application over last 7 years not exempt figure would be 3001
And I can ignore what the head of families were given to divide up as 250 per person for xmas and another 250 for birthday so 500 per person.

I think I am getting my head around this slowly sorry

bunnygo

my condolences. 

re house etc: for each organisation, ask for the bereavement team as they will be trained in what to do, won't muck you about, you'll get straight through and you won't be played chirpy hold music.

prioritise notifying banks to freeze accounts. You are making life harder with an official executor account, a normal bank account that is only for estate admin will be fine. Keep full records of course.

water company should freeze account on a 'tea and toilets' basis as that is all you will be using; contact them again at sale.

ditto electric and gas company; again account should be frozen.

broadband/phone; argue with BT if you want to keep those. Choices I was offered were 'shut it down this month' or take over the account to end of the contract whether you need it or not. Broadband is needed as house in mobile dead zone. After a complaint I've now taken over the account and can close it at 30 days notice, otherwise will be stuck with it for 2 years and I hope won't need it that long.

council tax (via tell us once) -as noted there's nothing to pay until probate grant and hopefully six months after that.

tv licence is a simple online form, but they are slow to respond.

funeral expenses can be paid even from 'wait until probate' accounts; the bereavement team will guide you on how to submit the invoice.

Yorkie1

bunnygo said:

my condolences. 

re house etc: for each organisation, ask for the bereavement team as they will be trained in what to do, won't muck you about, you'll get straight through and you won't be played chirpy hold music.

prioritise notifying banks to freeze accounts. You are making life harder with an official executor account, a normal bank account that is only for estate admin will be fine. Keep full records of course.

water company should freeze account on a 'tea and toilets' basis as that is all you will be using; contact them again at sale.

ditto electric and gas company; again account should be frozen.

broadband/phone; argue with BT if you want to keep those. Choices I was offered were 'shut it down this month' or take over the account to end of the contract whether you need it or not. Broadband is needed as house in mobile dead zone. After a complaint I've now taken over the account and can close it at 30 days notice, otherwise will be stuck with it for 2 years and I hope won't need it that long.

council tax (via tell us once) -as noted there's nothing to pay until probate grant and hopefully six months after that.

tv licence is a simple online form, but they are slow to respond.

funeral expenses can be paid even from 'wait until probate' accounts; the bereavement team will guide you on how to submit the invoice.

One complication from using a personal account for estate funds is that the interest, if any, will be attributed to the executor personally rather than the estate.

otb666

Thank you
with the ultilities even though I asked for bereavement team I got agents who were just filling out an online form for that team as they did not have any agents available and were unable to put me through. They did not freeze accounts They put in Extors name and cancelled DD Online and put a hold on them hopefully.

Electric put me on a no standing charge tariff. Gas and water I hope they have noted accounts but no mention of no standing charge tariffs So will have to check them when they come through otherwise 20pm in standing charge for both these. All 3 accounts should be in name of Extors of Deceased now Cancelled broadband phone and sky also tv license. Extors set up joint bank account.

Saga have said cover for 60 day and then up to renewal 1/12/25 with heating on 16oc and weekly noted visits. 

Have 3 estate agents coming round so we can do Probate application. Although Banks sending figures (in 10 working days) at date of Death and what happens next letter we have the required statements and although I am confusing myself with whats not exempt in respect of gifts over last 7 years its only last few years that relevant as nothing over 6k a year when both alive and only one year with two 3k gifts. Assuming you go from April to April.

Shares equinti I have sent Death Cert which they have received and once Probate is granted I need to email them a copy.
One funeral plan we notified online and the other  sending a form as they want copy of DC and Will and both extors need to sign form. Apparently if deceased had completed a nominee form copy of will would not have been required.

We are expecting a tax rebate approx £1000 and overpayment of pension state pension and attendance allowance.

This week sorting house 2 estate agents and paying for wake.Sending sky stuff back.
Our funeral director is used to submitting invoice and he will mail it to us to take to bank.