Will / trust

Skint_yet_Again

Thank you Yorkie1 and doodling. 

Pecuniary legacy now paid and informal receipt signed by beneficiary. I took a screenshot of the online banking receipt for the transaction online and will print it off when I get access to a printer. 

Next week I will close the remaining non-interest paying account into executor account. All other accounts are cash isas and will remain within the isa tax wrapper up to 3 years. 

House remains up for sale. Ongoing expenses are utilities. Unoccupied house insurance has been paid for a year. Council tax will start 6 months after probate granted (100%) with 6 months exemption from the empty home premium.(then goes up to 200%)

jem16

Skint_yet_Again said:

Thank you Yorkie1 and doodling. 

Pecuniary legacy now paid and informal receipt signed by beneficiary. I took a screenshot of the online banking receipt for the transaction online and will print it off when I get access to a printer. 

Next week I will close the remaining non-interest paying account into executor account. All other accounts are cash isas and will remain within the isa tax wrapper up to 3 years. 

House remains up for sale. Ongoing expenses are utilities. Unoccupied house insurance has been paid for a year. Council tax will start 6 months after probate granted (100%) with 6 months exemption from the empty home premium.(then goes up to 200%)

Have you checked with regards to Council Tax as some councils give a discount where it’s being sold and unoccupied even after the exemption period?

Skint_yet_Again

Thanks so much for the info jem16. I will contact the council tax again nearer the end of the 6 months exemption & hopefully my council will offer that too if we haven’t sold by then. 

Skint_yet_Again

Could someone please confirm I have understood the ongoing estate position correctly during the admin period?

One normal interest savings account £2862 X 3.45% = £99 pa (approx) taxable

Continuing Cash ISA’s (non spouse) remain in isa wrapper tax free (up to 3 years after death or until distribution whichever is first) & no CGT or income tax to pay (there was no iht to pay / isa balances plus accrued interest to date of death were included in calculation). 

Simple estate. ISAs are excluded. No need to report to HMRC any estate income if total is below £500 (just one normal bank account still paying interest). In the year of death the income will be part year from date of death to 5/4/26 but the £500 income tax limit is not pro-rata? However a full year income to 5/4/27 will still be below £500. No need to complete R185. 

If the house sells below probate value no CGT. 

When ready to distribute, we cash in all the Isas & one remaining savings account and share the remaining money between residual beneficiaries, after conveyancing solicitor / estate agent etc expenses/ final utilities paid? 

Prepare final executor accounts to be signed by all executors and main (residual) beneficiaries? 

As always I am grateful for any help or advice. 

Savvy_Sue

AFAIK the residual beneficiaries do not need to sign the estate accounts. They have a right to see them (and of course a right to ask any questions), but they don't have to agree that they are accurate. On one level, how would they know?

Skint_yet_Again

Thanks Savvy_Sue. Can anyone advise if I am on the right track with the rest of the points raised above? 

poppystar

What do you mean by “ISAs are excluded”? What are you excluding them from?

Skint_yet_Again

According to gov.uk this is a simple estate so I was meaning that interest from isas is not included towards the £500 tax-free amount. However I am not sure I trust that website as pointed out by many they do not seem to get everything right. 

Income received from 6 April 2024

If the estate’s income from any sources is £500 or less, you do not need to report the estate to HMRC.

The £500 tax-free amount applies: 

• for each tax year of the administration period from 6 April 2024, but you cannot carry over unused amounts from one tax year to the next
• to all types of income, except ISAs, which continue to be exempt from Income Tax or Capital Gains Tax until the estate is closed or up to 3 years after the person’s death