Do I need to go through years of bank statements as an Executor, Beneficiary and POA?

torziworziwoo

I am currently the POA for my Mother. I heard recently of someone who had to go through 7 years of bank statements to prove that no gifts had been made. Would I and my siblings have to do this as we all know about her assets, her income and her savings? She has no hidden accounts or shares or properties. We are the only beneficiaries and the only executors.
Also is it up to us to inform HMRC that no IHT is due or do we have to somehow prove it?

Keep_pedalling

Presumably between you are aware of any gifts she has made to each of you so won’t have to trawl through 7 years of bank statements.

You will only have to do an IHT return if her estate exceeds £325k (up to double that if she is a widow) 

The difficult for executors incomes when they have little or no knowledge of the testator’s finances which is not usually the case where children are the executors. 

torziworziwoo

OK thanks. I have her statements so can see and know that there have been no payments to anyone for that much. I guess it's just a question of trust, by that I mean my siblings trusting me or trawling through everything themselves. So does everyone have to have a form filled for HMRC regardless of whether or not they exceed that threshold?

poseidon1

torziworziwoo said:

OK thanks. I have her statements so can see and know that there have been no payments to anyone for that much. I guess it's just a question of trust, by that I mean my siblings trusting me or trawling through everything themselves. So does everyone have to have a form filled for HMRC regardless of whether or not they exceed that threshold?

One does not know whether IHT thresholds have been exceeded ( or not) without being certain there were no significant gifts 7 years prior to death.

For example, an estate valued  at death at £325k would only need unexpired gifts of £10k to attract a liability, notwithstanding unused £3,000 annual exemptions assuming the single NRB was all that was available.

As indicated, an executor failing to excercise appropriate due diligence to check the position could find themselves subject to personal HMRC sanctions for carelessness/ negligence.

Marcon

Keep_pedalling said:

The difficult for executors incomes when they have little or no knowledge of the testator’s finances which is not usually the case where children are the executors. 

I think you'll find it is very often the case! Plenty of parents - especially those who come under the heading 'old school' when it comes to money - have little appetite for sharing their financial information with their offspring.

Keep_pedalling

Marcon said:

Keep_pedalling said:

The difficult for executors incomes when they have little or no knowledge of the testator’s finances which is not usually the case where children are the executors. 

I think you'll find it is very often the case! Plenty of parents - especially those who come under the heading 'old school' when it comes to money - have little appetite for sharing their financial information with their offspring.

True, although where gifting is involved it is usually to their children and grand children so it should not be too difficult to establish to establish what gifting has been made for most families. 

silvercar

Keep_pedalling said:

Marcon said:

Keep_pedalling said:

The difficult for executors incomes when they have little or no knowledge of the testator’s finances which is not usually the case where children are the executors. 

I think you'll find it is very often the case! Plenty of parents - especially those who come under the heading 'old school' when it comes to money - have little appetite for sharing their financial information with their offspring.

True, although where gifting is involved it is usually to their children and grand children so it should not be too difficult to establish to establish what gifting has been made for most families. 

Assuming siblings are honest with each other, particularly if one has had a large gift they don't want to disclose to their sibling(s).