Possible Executor of an Insolvent Parent

bobster2

Buckweasel said:

We had to clear the flat as it was council owned, we cleared it and cleaned it  and handed the keys back. It was not kept in a good way, very bad in fact, just clothes, papers and very little else, photos, minimal kitchen stuff and basic furniture.

You should be OK.

Collecting and storing someone's possessions to protect them is not intermeddling.

Disposing of assets would be intermeddling.

https://www.higgsllp.co.uk/articles/what-is-intermeddling-in-an-estate

RAS

Basically, you've limited post mortem debts.

Keep_pedalling

I would call HMRCs Deceased Estate Helpline on Monday. Tell them that because the estate is insolvent both executors are going to renounce their powers and not administer the estate.  Ask them as your father’s major creditor, what they require you to send them. I suspect they will need the renouncement forms and the original will. 

https://www.gov.uk/find-hmrc-contacts/bereavement-and-deceased-estate-enquiries

Keep_pedalling

One other thought, had HMRC made him bankrupt or started the bankruptcy procedure? 

Buckweasel

No the Tax bill assessment is still in abeyance, it is between him and another party, he did ask for a review but it didn't get any further, the other party has engaged a solicitor but Dad hadn't. This is an exert from the last correspondence. Brace yourselves!

I can confirm the assessment is a Joint and several liability assessment where both parties are responsible for the

1.2m assessment (not 1.2m each).

HMRC have identified liable parties and have issued a joint and severally liability assessment to all parties.

HMRC can’t dictate who pays the assessment, or how all parties split the liability however, all parties are responsible

for the 1.2m assessment until the assessment is paid in full.

Silvertabby

Buckweasel said:

We had to clear the flat as it was council owned, we cleared it and cleaned it  and handed the keys back. It was not kept in a good way, very bad in fact, just clothes, papers and very little else, photos, minimal kitchen stuff and basic furniture.

Too late for you, but for the benefit of anyone else reading this.....

In the case of an insolvent estate and council/housing authority property, the next of kin is NOT 'legally obliged' to clear and clean the property at their own expense.  Of course, they'll try to tell you that you are - probably part of their job description - but they are wrong.

When my sister died - insolvent and with a serious hoarding problem - I just handed her keys to the HA clerk.  She expressed surprise at how quickly I must have cleared/cleaned the flat, so I explained that I hadn't touched it and that there was no money in the estate to pay for a cleaning company (or rent due until the end of the month).  She tried to give me the keys back, saying that she couldn't accept them until the flat had been cleared and cleaned, but I knew that was (legally) nonsense so I just left the keys on the counter and walked out.  Never heard anything more from them.

GDB2222

Can I ask what you intend to do with the stuff in storage? Used furniture generally has practically no value, or even a negative value, as it can cost more to dispose of than it is worth. In theory it belongs to the estate, but in practice I doubt anyone will be very interested. If HMRC become administrator of the estate they will have no way of knowing what was in Dad’s flat, anyway. 

Where are you storing it, and are you paying for that? 

Buckweasel

I have a unit for work so have put it in there for now, it will be for the tip most likely. 

Keep_pedalling

Buckweasel said:

No the Tax bill assessment is still in abeyance, it is between him and another party, he did ask for a review but it didn't get any further, the other party has engaged a solicitor but Dad hadn't. This is an exert from the last correspondence. Brace yourselves!

I can confirm the assessment is a Joint and several liability assessment where both parties are responsible for the

1.2m assessment (not 1.2m each).

HMRC have identified liable parties and have issued a joint and severally liability assessment to all parties.

HMRC can’t dictate who pays the assessment, or how all parties split the liability however, all parties are responsible

for the 1.2m assessment until the assessment is paid in full.

So assuming HMRC are going to be able to get their hands on your father’s estate, his partner is still going to be on the hook for £900k

Are any of his assets held within a pension? Pensions don’t usually for part of someone’s estate but in some circumstances can be clawed back by HMRC. 

Buckweasel

Hi
No nothing held in a pension his assets are a piece of land he owns outright and 25% ownership of another piece of land, the owner of the 75% share is going to be upset, when he finds out who his new partner is!