will and affects

Grumpy_chap

OP - Sorry for your loss.

I don't think I'd countenance the suggestions to leave the Estate unadministered as a good idea.

In as much as refusing a legacy or implementing a DoV to avoid a legacy would be considered DoA, I can see that just doing nothing might be described a negligent and the effect is also DoA. Particularly if that is a conscious decision to do nothing such that entitlement to benefits is retained.

In addition, leaving the Estate unadministered is building up further and larger challenges along the way.

First, any change in value of the Estate assets will potentially result in a CGT charge for the Estate. All that will eventually have to be managed by someone.

Also, if I have understood correctly, there is the deceased, two children of the deceased are beneficiaries and two grandchildren of the deceased are beneficiaries. One of the beneficiaries (I am not sure which) currently lives in the property left by the deceased. At some point in the future, and potentially 20-30 years given it is the next generation, one of the four beneficiaries will pass on. It will be impossible to resolve their Estate until the Estate of the recently deceased has been resolved. It will be a massive nightmare for someone to unravel.

There is also every probability that the first of the four deceased to pass on is not the beneficiary currently residing in the property left by the deceased. However challenging this is for the individuals involved to resolve now, for the Executor of the next deceased to have to sort it all out will only be more difficult, especially if at that time it becomes necessary for the next Executor to force the resident of the property to vacate.

There are a couple of other threads in the forums where people have had Estates not wound up in a timely fashion and the ever increasing difficulties encountered.

If none of the appointed Executors wish to manage the Estate, then they can all renounce their roles but the sensible to do then would be to appoint another, independent Executor who will get the job done.

Is the Estate below the IHT thresholds?

JD118

https://forums.moneysavingexpert.com/discussion/comment/82007955#Comment_82007955

Sorry I don't know, what a IHT is,

Grumpy_chap

IHT = Inheritance Tax.

JD118

https://forums.moneysavingexpert.com/discussion/comment/82007990#Comment_82007990

Below 300k ? around under 250,around 38,000 in cash monies, no assets inside in or out, house in serious need of modernisation so was valued by three independents, back in the probate stages.

Going back to benefits, I don't want to give the illusion that any of us want to be on them, I have ill health, along with my wife I, also have children, so does the male inside the property,minus the wife and children, other two are state pensioners, We are stuck in a rutt, or at least two of us are, fighting for money proving you have issues, then this added headache oh does make it worse,

Grumpy_chap

So, there are four people standing to inherit roughly £70k each.

The issue with the individual living in the house needs to be resolved at some point in time. I note the comments about the individual having health challenges and not understanding matters in the way the average person might. Resolving that does not seem to be something that will get easier if the matter is delayed - indeed it might be some 20 - 30 years until the next person (of the four beneficiaries) passes on. By that time the person in the property, currently in their 50's, will be in their 80's potentially and might well find it even harder to cope with the next Executor trying to administer the Estate of the next deceased and having to move out the individual in the property who will, understandably and correctly, be able to say "I was allowed to stay here".

In the mean time, everyone else had made do without their £70k so unable to make their own lives better, improve their house, enjoy a holiday, etc.

JD118

https://forums.moneysavingexpert.com/discussion/comment/82008037#Comment_82008037

I totally understand, be the next gen with the issues, I, ofter wondered what would happen to the occupier share if he ever passed, he would never do a will, In my position in a flat live on about 100 pound a week to feed four and have my rent paid, it's not the best, if I had 70k would it be, no doubt be taxed then would get told how to spend it from high command somewhere then how long would it last, I'm only in my 40's,

Grumpy_chap

Given that the Estate is below IHT, the inheritance will not be taxed. You will not be taxed on the £70k.

Who do you think will tell you how to spend the £70k?

JD118

https://forums.moneysavingexpert.com/discussion/comment/82008057#Comment_82008057

Benefits no doubt

RAS

If you get £70k, you'll not be receiving benefits. So you'll be paying rent and CT.

You do need to understand deprivation of assets. So you can't buy a luxury car or go on a holiday of a lifetime and then start a claim a month later.

You can pay off debts, replace worn out belongs, take a decent holiday.

When the money runs out, if you claim again, benefits will have a basic rule of thumb on how much a family of your size needs for a year, which will be more than a family on benefits receive.

Look at debts and replacement costs, and a decent holiday. Deduct that from the inheritance. Then look at your total current income, add a bit. How many years would what's left fund you, two or less?

Benefits aren't going to challenge your basic living expenses but they would want to look at your debt pay offs, major purchases, so keep records.

And you can keep a small amount in savings when you re-apply.

poseidon1

The reality here is the house likely cannot be sold without rather aggressive and no doubt expensive legal action against the vulnerable occupying beneficiary, with the additional problem of securing alternative suitable accommodation thereafter. I cannot see the executors being prepared to significantly impact the estate cash to fund such action, as well as being very uncomfortable at the thought of imposing on the vulnerable beneficiary in this way.

It is also as well to reiterate the point that the Will does give them apparent indefinite powers to postpone a sale in any event.

Therefore at the current time and perhaps for the foreseeable future, they only have immediate access to the £38k cash from the estate between them.

Seems to me that the situation outlined in @Newly_retired's post, may well be the pragmatic outcome in the OP's circumstance, objectionable as it might be to others contributing to this thread.