Winding up of estate: retaining financial records

Misha96

I executed my uncle's will almost three years ago. Since a fairly rapid probate, all minor debts and taxes have been long paid and the estate distributed. I have retained a pile of paperwork to do with my uncle's savings and investments plus valuations at the time of his death. How long ought I to wait before shredding this data?

Emmia

I've still got the box file of documents relating to the estate I dealt with over a decade ago. It's on a high shelf and I've not yet gotten around to shredding it... 

I'd say 7 years for financial records would be a good rule of thumb.

elsien

Up to 20 years for inheritance tax records, accordingto gov.uk.
https://www.gov.uk/valuing-estate-of-someone-who-died/records

DavidT67

HMRC can investigate for up to twenty years after inheritance tax return filing.  So was there only IHT due ?

Were the executors and the beneficiaries the same persons ?  If so a dispute regarding estate administration seems unlikely.  

Otherwise, keep key documents supporting the distributed estate accounts and any probate valuations for at least seven years. 

Misha96

There was no IHT, only income tax on the estate between death and probate, so I'll use the 7- year rule of thumb.

I was the executor and only financial beneficiary of any consequence.

Savvy_Sue

You could always scan and save virtually... 

SiliconChip

Can anyone provide a justification for keeping 7 years of records where no IHT was due? I certainly didn't keep most of it for more than 1 year after I'd distributed my mum's estate, and I'm unsure who the forum thinks might have a legitimate reason to view them.

user1977

HMRC in relation to any liabilities of the deceased (or the estate) for Income Tax or Capital Gains Tax, for example.

It might also be useful if there are e.g. queries from creditors about alleged debts.

SiliconChip

user1977 said:

HMRC in relation to any liabilities of the deceased (or the estate) for Income Tax or Capital Gains Tax, for example.

It might also be useful if there are e.g. queries from creditors about alleged debts.

OK, but would you even apply for probate (if needed) or distribute the estate before having got confirmation from HMRC that there's nothing owing in either direction, which is what I did? And isn't the creditors issue resolved by a Gazette notice (not that I bothered with that)? 

mybestattempt

SiliconChip said:

user1977 said:

HMRC in relation to any liabilities of the deceased (or the estate) for Income Tax or Capital Gains Tax, for example.

It might also be useful if there are e.g. queries from creditors about alleged debts.

OK, but would you even apply for probate (if needed) or distribute the estate before having got confirmation from HMRC that there's nothing owing in either direction, which is what I did? And isn't the creditors issue resolved by a Gazette notice (not that I bothered with that)? 

It's a judgement call, no size fits all.

Where there is no IHT liability, the will/intestacy estate is straightforward and there is little or nothing HMRC and/or the beneficiaries might dispute then the need to keep records for years may be unnecessary.

On the other hand it maybe prudent to keep records for longer if there is potential for any problems/issues in the future either from the beneficiaries or HMRC.

The record keeping requirement for IHT liable estates appears to arise from HMRC having the right to assess IHT deliberately understated within 20 years.

user1977

SiliconChip said:

user1977 said:

HMRC in relation to any liabilities of the deceased (or the estate) for Income Tax or Capital Gains Tax, for example.

It might also be useful if there are e.g. queries from creditors about alleged debts.

OK, but would you even apply for probate (if needed) or distribute the estate before having got confirmation from HMRC that there's nothing owing in either direction, which is what I did? And isn't the creditors issue resolved by a Gazette notice (not that I bothered with that)? 

Yes and no respectively. A Gazette notice doesn’t make debts vanish, it just is deemed to the minimum an executor needs to do to discharge their responsibilities.