Possible Executor of an Insolvent Parent

Buckweasel

Hi All 
This is a conundrum! I hope someone can help with. 
My father has passed away leaving a fair old mess behind. 
If he has an estate of about 300,000 but has a HMRC bill of 750,000+
What might happen I wonder, will HMRC go after the estate and take all what it can? Leaving a zero balance and deficit?  We have not done anything as named executors such as tell me once etc incase that is intermeddling as I don't know what to do, renounce as executor or try and sort through it, but once I start that's it I'm stuck in a role I'm clearly not qualified for. But it may involve insolvency companies etc. that would need paying, for what?  or would the taxman take over and deal with it all?
Thank for reading. 

MobileSaver

Buckweasel said:

he has an estate of about 300,000 but has a HMRC bill of 750,000+
... I don't know what to do, renounce as executor 

Absolute no brainer. Renounce as executor and walk away.

Don't touch any of your father's bank accounts or assets and don't inform the bank. If you do anything that is considered intermeddling then you will be in a world of pain for probably years to come.

Brie

I agree with the advice already given but would add that if there are things that are of interest to you in his home then take those away with you.  Chances are even things we expect to be worth lots of dosh are actually not worth much and simply binned in this situation.  

So photo albums, letters, the painting grandma did that's hanging on the wall.  Obviously leave behind the Bugatti that's parked on the drive.  

Linton

It would remove future hassle if you use Tell Me Once. You dont need to be the executor to do this - normally it is done by the person registering the death and it does not involve dealing with the deceased's assets.  Hence it should not be considered intermeddling.  Has the death been registered? If so the Registrar would have explained the details at that time. If the death has not been registered, it  should be, again not intermeddling.

I agree you should renounce. Tell Me Once will tell HMRC etc that there is no executor.

Keep_pedalling

Is the debt a company dept (Ltd co.) or a personal one (sole trader)? Has he left a widow? How old is the debt?

 MobileSaver said:

Buckweasel said:

he has an estate of about 300,000 but has a HMRC bill of 750,000+
... I don't know what to do, renounce as executor 

Absolute no brainer. Renounce as executor and walk away.

Don't touch any of your father's bank accounts or assets and don't inform the bank. If you do anything that is considered intermeddling then you will be in a world of pain for probably years to come.

Informing the bank of his death is not intermeddling, withdrawing the money is. If there are sufficient assets in his account then banks will agree to pay the funeral director directly. Again this is not intermeddling. 

Buckweasel

Hi Thanks for the advice, it's been most helpful. He was a widower sole trader, he had companies in the past though.
There isn't a death certificate yet just a fact of death. We did tell the banks as money was going out by direct debit I assume. And did pay for the funeral through the bank and that is all other than putting his stuff in storage. 

Marcon

Buckweasel said:

Hi Thanks for the advice, it's been most helpful. He was a widower sole trader, he had companies in the past though.
There isn't a death certificate yet just a fact of death. We did tell the banks as money was going out by direct debit I assume. And did pay for the funeral through the bank and that is all other than putting his stuff in storage. 

It's really tough for you. You not only have to cope with bereavement, but almost invariably people have a sense of guilt about 'not doing anything' despite being named as an executor. If it helps, think about whether your father would want to put you through the stress (not to mention potential personal liability if you get anything wrong) of administering an insolvent estate.

Keep_pedalling

All the executors need to complete form PA 15 to renounce their powers. Presumably HMRC are going to have apply for probate themselves. Who holds the original will? 

https://www.gov.uk/government/publications/form-pa15-give-up-probate-executor-rights

Buckweasel

Thank you for the link to the form I've downloaded it, I have written to a solicitor today that was dealing with some of his transactions, he's back on Tuesday so will update you on the outcome. 
We have  the will, he did another one but that didn't get signed or witnessed still me and my sister but with the addition of the will people as executors? If that had been signed they would have to deal with it if we didn't I guess. Must say you have all been a fabulous help, thank you 

RAS

Please be careful about the stuff in storage. It's reasonable to keep paperwork to pass on the the administrators. You need to offer it though they may or may not want it. It's fine to hand it over in carrier bags or boxes. 

Personal stuff like family photos are OK to keep, but don't go sorting the kitchen gear etc. That's the administrators' role.

I'd echo K_p's comments, essentially this is going to be similar to a bankruptcy. HMRC aren't the easiest of people to deal with and your father wouldn't want you to gave to deal with all the hassle on top of the grief.